Real Estate Math
A mortgage balance is $320,000 at 6.5% annual interest. The monthly interest charge is:
A$1,733.33✓ Correct
B$2,080.00
C$1,600.00
D$1,850.00
Explanation
Monthly interest = $320,000 × 6.5% ÷ 12 = $320,000 × 0.065 ÷ 12 = $20,800 ÷ 12 = $1,733.33. To solve this, multiply the relevant values: $320,000 at 6.5%.. The correct answer is $1,733.33.. This is a common calculation on the New York real estate exam.
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