Real Estate Math
A mortgage has a balance of $160,000 at 7.5% annual interest. What is the monthly interest charge?
A$1,200
B$1,000✓ Correct
C$750
D$1,333
Explanation
Monthly interest = $160,000 × (7.5% ÷ 12) = $160,000 × 0.00625 = $1,000. To solve this, multiply the relevant values: $160,000 at 7.5%.. The correct answer is $1,000.. This is a common calculation on the Pennsylvania real estate exam.
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