FinancingInterest_calculationsEASY
A condominium mortgage in Westchester County has a principal balance of $675,000 at 6.75% annual interest. What is the interest portion of the monthly payment?
Correct Answer
C) $3,796.88
Monthly interest = Principal × Annual Rate ÷ 12 = $675,000 × 6.75% ÷ 12 = $675,000 × 0.0675 ÷ 12 = $45,562.50 ÷ 12 = $3,796.88.
Answer Options
A
$45,562.50B
$4,556.25C
$3,796.88D
$3,037.50Why This Is the Correct Answer
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Key Terms:
condo_mortgagemonthly_interestwestchester_countyinterest_calculation
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