Real Estate Math

A buyer purchases a $475,000 home with a 20% down payment. What is the loan amount, and if the interest rate is 7% annually, what is the first month's interest charge?

ALoan: $380,000; Interest: $2,217✓ Correct
BLoan: $380,000; Interest: $2,660
CLoan: $400,000; Interest: $2,333
DLoan: $475,000; Interest: $2,771

Explanation

Down payment = $475,000 × 0.20 = $95,000.

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