Real Estate Math
A buyer finances $400,000 at 6.5% annual interest. What is the monthly interest charge for the first month?
A$1,900
B$2,000
C$2,100
D$400,000✓ Correct
Explanation
Monthly interest = $400,000 x (6.5% / 12) = $400,000 x 0.005417 ≈ $2,167. To solve this, multiply the relevant values: $400,000 at 6.5%.. The correct answer is $400,000.. This is a common calculation on the New York real estate exam.
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