Real Estate Math

A Wisconsin investor buys a 4-plex for $480,000 and puts 25% down. The remaining loan at 6.5% interest only (annually). What is the annual interest payment?

A$23,400✓ Correct
B$24,600
C$26,100
D$27,300

Explanation

Loan = $480,000 × 75% = $360,000. Annual interest = $360,000 × 6.

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