Real Estate MathInterestEASY
What is the annual interest rate on a $300,000 loan requiring a monthly interest payment of $500?
Correct Answer
A) 2.00%
Annual interest = $500 × 12 = $6,000. Rate = $6,000 ÷ $300,000 = 0.02 = 2%
Answer Options
A
2.00%B
2.50%C
3.00%D
3.50%Video Explanation3 min
Audio Lesson3 min
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Related Topics & Key Terms
Related Topics:
loan-origination-feesamortization-scheduleapr-calculation
Key Terms:
annual interest rateinterest-only loanmonthly paymentloan principalrate calculation
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