Real Estate Math

A buyer in Albuquerque obtains a $240,000 mortgage at 7% annual interest. What is the first month's interest charge?

A$1,680
B$1,400✓ Correct
C$2,800
D$700

Explanation

Monthly interest = $240,000 × 0.07 / 12 = $16,800 / 12 = $1,400.

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