Real Estate Math

A NJ property has $180,000 remaining on the mortgage at 6% annual interest. The monthly interest portion of the next payment is:

A$1,080
B$900✓ Correct
C$10,800
D$750

Explanation

Monthly interest = $180,000 × 6% ÷ 12 = $180,000 × 0.005 = $900. To solve this, multiply the relevant values: $180,000 at 6%.. The correct answer is $900.. This is a common calculation on the New Jersey real estate exam.

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