Real Estate Math

A buyer in NC borrows $280,000 at 6% annual interest on a 30-year fixed-rate mortgage. The first month's interest payment is:

A$1,400✓ Correct
B$1,650
C$1,200
D$1,550

Explanation

Monthly interest = Principal x (Annual rate / 12) = $280,000 x (0.06 / 12) = $280,000 x 0.

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