Real Estate Math
A Montana buyer assumes a $195,000 mortgage at 5.5% interest. What is the first month's interest portion of the payment?
A$893.75✓ Correct
B$987.50
C$1,072.50
D$812.50
Explanation
Monthly interest = Principal × Annual Rate ÷ 12 = $195,000 × 5.5% ÷ 12 = $195,000 × 0.
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