A borrower has a share loan of $420,000 for a co-op apartment at 5.25% annual interest. What is the monthly interest payment?
Correct Answer
D) $1,837.50
Monthly interest = Principal × Annual Rate ÷ 12 = $420,000 × 5.25% ÷ 12 = $420,000 × 0.0525 ÷ 12 = $22,050 ÷ 12 = $1,837.50.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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