FinancingInterest_calculationsEASY
A cooperative apartment in Manhattan is purchased for $800,000 with a share loan of $640,000 at 5.5% annual interest. What is the monthly interest payment for the first month?
Correct Answer
C) $2,933.33
Monthly interest = Principal × Annual Rate ÷ 12 = $640,000 × 5.5% ÷ 12 = $640,000 × 0.055 ÷ 12 = $35,200 ÷ 12 = $2,933.33. Co-op share loans in New York are personal property loans secured by stock shares.
Answer Options
A
$4,400.00B
$3,666.67C
$2,933.33D
$35,200.00Why This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
coop_financingshare_loanmonthly_interestpersonal_property
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