Real Estate Math
A New Mexico property is subject to a special assessment of $15,000 for street improvements. The assessment is spread over 10 years at 6% interest annually. The approximate annual payment is:
A$1,500
B$2,040✓ Correct
C$1,800
D$2,250
Explanation
Approximate annual payment for a $15,000 assessment over 10 years at 6% interest: roughly $1,500/year principal + average interest of about $540/year in early years. The annualized payment is approximately $2,040. (Exact calculation using loan payment formula gives about $1,665/year —)
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