Real Estate Math
A buyer obtains 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$1,800
Explanation
Monthly interest = Principal × Annual Rate ÷ 12 = $240,000 × 0.06 ÷ 12 = $1,200. To solve this, multiply the relevant values: $240,000 at 6%.. The correct answer is $1,200.. This is a common calculation on the Tennessee real estate exam.
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