Real Estate Math

A Pennsylvania buyer obtains a $300,000 mortgage at 6.5% annual interest. What is the approximate monthly interest for the first month?

A$1,950
B$1,625✓ Correct
C$1,300
D$2,275

Explanation

Monthly interest = Principal × Annual rate / 12 = $300,000 × 0.065 / 12 = $300,000 × 0.

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