Real Estate Math

A Texas property has a loan balance of $210,000 at 5% annual interest. What is the interest portion of the next monthly payment?

A$750
B$875✓ Correct
C$900
D$1,050

Explanation

Monthly interest = $210,000 × (0.05 ÷ 12) = $210,000 × 0.004167 = $875.

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