Real Estate Math
A Washington investor borrows $600,000 at 6% annually on an interest-only loan for 3 years. What are total interest payments over 3 years?
A$36,000
B$72,000
C$108,000✓ Correct
D$120,000
Explanation
Annual interest = $600,000 × 6% = $36,000. Total over 3 years = $36,000 × 3 = $108,000. To solve this, multiply the relevant values: $600,000 at 6%.. The correct answer is $108,000.. This is a common calculation on the Washington real estate exam.
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