Real Estate Math

A NH buyer finances $280,000 at 6.5% annual interest. What is the first month's interest payment?

A$1,516.67✓ Correct
B$1,633.33
C$1,820.00
D$1,400.00

Explanation

Monthly interest = Principal × annual rate / 12 = $280,000 × 0.065 / 12 = $18,200 / 12 = $1,516.

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