Finance
A Tennessee borrower takes out a $180,000 mortgage at 6.5% interest. What is the first month's interest payment?
A$975✓ Correct
B$1,170
C$975.00
D$1,062.50
Explanation
Monthly interest = $180,000 × 6.5% ÷ 12 = $180,000 × 0.005417 = $975. To solve this, multiply the relevant values: $180,000 at 6.5%.. The correct answer is $975.. This is a common calculation on the Tennessee real estate exam.
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