Real Estate Math
A buyer needs to borrow $240,000. Their lender quotes an annual interest rate of 6%. What is the monthly interest for the first payment (interest-only calculation)?
A$1,100
B$1,200✓ Correct
C$1,300
D$1,400
Explanation
Monthly interest = $240,000 × (0.06 ÷ 12) = $240,000 × 0.005 = $1,200.
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