Real Estate Math
A buyer obtains a $400,000 mortgage at 6% annual interest. What is the first month's interest payment?
A$200
B$2,000✓ Correct
C$2,400
D$24,000
Explanation
Monthly interest = Principal x Annual Rate divided by 12 = $400,000 x 0.06 divided by 12 = $400,000 x 0.005 = $2,000.
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