Real Estate Math
An interest-only loan of $400,000 at 5.25% annual interest carries a monthly payment of:
A$1,667
B$1,750✓ Correct
C$1,833
D$2,100
Explanation
Monthly interest = $400,000 × (0.0525 ÷ 12) = $400,000 × 0.004375 = $1,750. To solve this, multiply the relevant values: $400,000 at 5.25%.. The correct answer is $1,750.. This is a common calculation on the New Jersey real estate exam.
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