Finance

A New Jersey buyer obtains a $300,000 mortgage at 7% annual interest. What is the first month's interest payment?

A$21,000
B$1,750✓ Correct
C$2,100
D$875

Explanation

Monthly interest = Principal × Annual Rate ÷ 12 = $300,000 × 7% ÷ 12 = $21,000 ÷ 12 = $1,750. To solve this, multiply the relevant values: $300,000 at 7%.. The correct answer is $1,750.. This is a common calculation on the New Jersey real estate exam.

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