Real Estate Math

A buyer takes out a $240,000 mortgage at 6% annual interest. What is the first month's interest payment?

A$1,200✓ Correct

B$1,440

C$1,000

D$14,400

Explanation

Monthly interest = $240,000 × (6% ÷ 12) = $240,000 × 0.005 = $1,200.

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