Real Estate Math

A Missouri loan of $160,000 at 7% interest has a first-month interest charge of:

A$933✓ Correct
B$1,120
C$11,200
D$560

Explanation

Monthly interest = $160,000 × 7% ÷ 12 = $160,000 × 0.005833 = $933.33. To solve this, multiply the relevant values: $160,000 at 7%.. The correct answer is $933.. This is a common calculation on the Missouri real estate exam.

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