Real Estate Math
A NJ buyer purchases a $550,000 home with a 10% down payment financed with a 5-year interest-only mortgage at 6% annual interest. What is the monthly interest payment?
A$2,062.50
B$2,475.00✓ Correct
C$2,200.00
D$3,300.00
Explanation
Loan amount = $550,000 × 0.90 = $495,000. Monthly interest = $495,000 × (0.06 ÷ 12) = $495,000 × 0.005 = $2,475.
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