Real Estate Math

A Missouri lender quotes a 7.5% annual interest rate. A borrower has a $120,000 loan. What is the first month's interest payment?

A$750✓ Correct
B$900
C$1,000
D$812.50

Explanation

Monthly interest = $120,000 × 7.5% ÷ 12 = $120,000 × 0.

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