Real Estate Math

A Washington homeowner borrows $50,000 in a second mortgage at 8% annual interest only. Monthly payment is:

A$266.67
B$333.33✓ Correct
C$400.00
D$416.67

Explanation

Monthly interest-only payment = $50,000 × 8% ÷ 12 = $4,000 ÷ 12 = $333.33.

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