Real Estate Math
A mortgage has a remaining balance of $180,000 at 5% annual interest. What is the interest portion of the first monthly payment?
A$625
B$750✓ Correct
C$875
D$900
Explanation
Annual interest: $180,000 x 0.05 = $9,000. Monthly interest: $9,000 / 12 = $750. To solve this, multiply the relevant values: $180,000 at 5%.. The correct answer is $750.. This is a common calculation on the Rhode Island real estate exam.
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