Real Estate Math

A Wyoming buyer closes on a home with a $270,000 mortgage at 6.75% per year. What is the interest for the first month?

A$1,518.75✓ Correct
B$1,620
C$1,687.50
D$18,225

Explanation

Monthly interest = $270,000 x (6.75% / 12) = $270,000 x 0.005625 = $1,518.75. To solve this, multiply the relevant values: $270,000 at 6.75%.. The correct answer is $1,518.75.. This is a common calculation on the Wyoming real estate exam.

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