Real Estate Math
A Wisconsin seller pays off a $175,000 mortgage at closing plus 2 months of accrued interest at 5% annually. How much interest is owed?
A$1,250.00
B$1,458.33✓ Correct
C$1,750.00
D$2,916.67
Explanation
Monthly interest = $175,000 × 5% / 12 = $729.17. Two months = $729.17 × 2 = $1,458.33. To solve this, multiply the relevant values: $175,000 at 5%.. The correct answer is $1,458.33.. This is a common calculation on the Wisconsin real estate exam.
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