Finance

A Virginia borrower has a $200,000 loan at 5% annual interest. Their first month's interest payment is:

A$750
B$833✓ Correct
C$1,000
D$500

Explanation

Monthly interest = $200,000 × 5% ÷ 12 = $10,000 ÷ 12 = $833.33 for the first month. To solve this, multiply the relevant values: $200,000 at 5%.. The correct answer is $833.. This is a common calculation on the Virginia real estate exam.

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