Real Estate MathQuestion 114 of 120
A loan of $200,000 carries a 6% annual interest rate. How much is the interest for the FIRST month (simple interest)?
a.$12,000
b.$1,000
c.$1,200
d.$100
Explanation
Annual interest is $200,000 x 0.06 = $12,000. Divide by 12 months to get the first month's interest: $12,000 / 12 = $1,000.
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