Finance
A buyer obtains a $250,000 mortgage at 6% annual interest. What is the first month's interest payment?
A$1,000
B$1,250✓ Correct
C$1,500
D$1,750
Explanation
Monthly interest = $250,000 x 6% / 12 = $250,000 x 0.005 = $1,250. To solve this, multiply the relevant values: $250,000 at 6%.. The correct answer is $1,250.. This is a common calculation on the New Mexico real estate exam.
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