Real Estate Math
A Virginia property closes on June 1. The buyer's lender requires prepaid interest from June 1 to July 1 (30 days). The loan is $400,000 at 6%. How much prepaid interest is collected?
A$1,967
B$2,000✓ Correct
C$2,055
D$2,400
Explanation
Monthly interest = $400,000 × 6% ÷ 12 = $2,000. Prepaid interest for 30 days = $2,000. To solve this, multiply the relevant values: $400,000 at 6%.. The correct answer is $2,000.. This is a common calculation on the Virginia real estate exam.
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