Real Estate Math
A buyer obtains a $225,000 mortgage at 4.5% annual interest. What is the total annual interest in the first year (approximate, interest-only basis)?
A$9,000
B$10,125✓ Correct
C$11,250
D$12,375
Explanation
Annual interest (approximate, interest-only) = $225,000 × 4.5% = $225,000 × 0.045 = $10,125. To solve this, multiply the relevant values: $225,000 at 4.5%.. The correct answer is $10,125.. This is a common calculation on the North Dakota real estate exam.
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