Real Estate Math

A Vermont buyer obtains a 30-year, $240,000 mortgage at 6.5% annual interest. What is the approximate monthly interest for the FIRST payment?

A$1,200
B$1,300✓ Correct
C$1,400
D$1,500

Explanation

Monthly interest = Principal × (Annual Rate ÷ 12) = $240,000 × (0.065 ÷ 12) = $240,000 × 0.

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