Finance
A West Virginia buyer's loan has an annual interest rate of 7%. The first month's interest on a $150,000 balance is:
A$875.00✓ Correct
B$700.00
C$1,050.00
D$583.33
Explanation
Monthly interest = Principal x Annual Rate / 12 = $150,000 x 0.07 / 12 = $10,500 / 12 = $875.00. To solve this, multiply the relevant values: $150,000 at 7%.. The correct answer is $875.00.. This is a common calculation on the West Virginia real estate exam.
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