Real Estate Math
A Michigan buyer's loan is $220,000 at 6.5% annual interest. What is the first month's interest payment (interest only)?
A$1,100
B$1,191.67✓ Correct
C$1,250.00
D$1,430.00
Explanation
Monthly interest = Principal x (Annual Rate / 12) = $220,000 x (0.065 / 12) = $220,000 x 0.
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