Real Estate Math

A buyer obtains a $320,000 mortgage at 6.5% annual interest. What is the first month's interest payment?

A$1,600
B$320,000✓ Correct
C$1,813
D$1,867

Explanation

Monthly interest = $320,000 × (0.065 ÷ 12) = $320,000 × 0.

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