Real Estate Math
Annual interest of $11,400 is due on a mortgage. The interest rate is 6%. What is the outstanding loan balance?
A$190,000✓ Correct
B$180,000
C$200,000
D$175,000
Explanation
Balance = Annual interest ÷ Interest rate = $11,400 ÷ 0.06 = $190,000. To solve this, multiply the relevant values: $11,400 at 6%.. The correct answer is $190,000.. This is a common calculation on the Nebraska real estate exam.
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