Real Estate Math

A homeowner in Oklahoma City borrows $45,000 with a home equity loan at 8% simple interest for 1 year. What is the total interest paid?

A$3,200
B$3,600✓ Correct
C$4,000
D$2,800

Explanation

Simple interest = Principal x Rate x Time = $45,000 x 0.08 x 1 = $3,600.

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