Finance
A Mississippi buyer borrows $200,000 at 7.5% annual interest. What is the first month's interest charge?
A$1,000
B$1,250✓ Correct
C$1,500
D$750
Explanation
Monthly interest = $200,000 × (7.5% ÷ 12) = $200,000 × 0.00625 = $1,250. To solve this, multiply the relevant values: $200,000 at 7.5%.. The correct answer is $1,250.. This is a common calculation on the Mississippi real estate exam.
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