Finance
A buyer takes out a $250,000 mortgage at 5% annual interest on a 30-year amortized loan. The monthly interest for the FIRST payment is approximately:
A$833
B$1,042✓ Correct
C$1,250
D$625
Explanation
First month interest = $250,000 × (5% ÷ 12) = $250,000 × 0.004167 ≈ $1,042. To solve this, multiply the relevant values: $250,000 at 5%.. The correct answer is $1,042.. This is a common calculation on the Nebraska real estate exam.
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