Finance
A Minnesota borrower takes out a $320,000 mortgage at 6% annual interest. What is the first month's interest?
A$1,600✓ Correct
B$1,920
C$3,200
D$1,280
Explanation
Monthly interest = $320,000 × (6% ÷ 12) = $320,000 × 0.005 = $1,600. To solve this, multiply the relevant values: $320,000 at 6%.. The correct answer is $1,600.. This is a common calculation on the Minnesota real estate exam.
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