Real Estate Math

A NH investor buys a property for $400,000, puts down 30%, and finances the rest at 7% annual interest-only. What is the annual interest payment?

A$28,000
B$19,600✓ Correct
C$26,600
D$21,000

Explanation

Loan amount = $400,000 × (1 − 0.30) = $280,000.

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