What is the interest rate on a $200,000 loan requiring an annual interest payment of $8,000?
Correct Answer
A) 4.00%
Interest Rate = Annual Interest ÷ Principal = $8,000 ÷ $200,000 = 0.04 = 4%
Why This Is the Correct Answer
Interest Rate = Annual Interest ÷ Principal = $8,000 ÷ $200,000 = 0.04 = 4%
More Real Estate Math Questions
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- → A triangular lot has a base of 200 feet and a height of 150 feet. What is the area of the lot?
- → A seller closes on a property for $320,000. The commission is 6%, other seller closing costs are $5,000, and the existing mortgage payoff is $170,000. What are the seller's net proceeds before any tax effects?
- → A property sells for $325,000. If the commission is 6%, split equally between listing and selling brokers, what does each broker receive?
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