Real Estate Math
A Rhode Island investor buys a property for $700,000 with a 25% down payment and finances the rest at 6.5% annually. What is the annual interest on the mortgage for the first year (approximate)?
A$27,300
B$31,200
C$34,125✓ Correct
D$38,200
Explanation
Down payment: $700,000 x 0.25 = $175,000.
Related Rhode Island Real Estate Math Questions
- A buyer's monthly payment on a $220,000 loan at 7% for 30 years is approximately $1,464. Of the first payment, how much goes to interest?
- A buyer's annual income is $90,000. Under conventional lending guidelines (28% front-end ratio), what is the maximum monthly housing payment (PITI)?
- A seller wants to net $190,000 after paying a 5% commission and $3,500 in other closing costs. What must the property sell for?
- A Rhode Island property has an assessed value of $195,000. The property tax rate is $14.20 per $1,000 of assessed value. What is the annual property tax?
- A commission is split 60/40 between the listing and selling brokers on a $500,000 sale at 5% total commission. How much does the listing broker receive?
- A Rhode Island homeowner purchased their home for $275,000 and is selling it for $365,000. What is the gross profit?
- A Rhode Island property has annual NOI of $45,000 and annual debt service of $28,000. What is the debt coverage ratio (DCR)?
- A seller receives $187,000 after paying a 6% commission. What was the sale price?
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →