Real Estate Math

A Vermont buyer's loan amount is $240,000 at 6% annual interest. What is the first month's interest payment?

A$1,000
B$1,200✓ Correct
C$1,440
D$800

Explanation

Monthly interest = $240,000 x 6% / 12 = $240,000 x 0.005 = $1,200.

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