Real Estate Math
A buyer borrows $240,000 at 5% annual interest. What is the first month's interest payment?
A$800
B$1,000✓ Correct
C$1,200
D$1,400
Explanation
Monthly interest = Principal × Annual Rate ÷ 12 = $240,000 × 0.05 ÷ 12 = $12,000 ÷ 12 = $1,000. To solve this, multiply the relevant values: $240,000 at 5%.. The correct answer is $1,000.. This is a common calculation on the Montana real estate exam.
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