Question

The annual interest rate on a 15-year

mortgage on a house assessed at a value
Of $450 000 is 5 cents on every $1 What
is the interest paid on the mortgage for the
first year?

Answer 1

The amount of interest paid is $22,500

Explanation:

Firstly, we need the number of $1 in $450,000

That would simply be $450,000/$1 = 450,000

5 cents is same as 5/100 = $0.05

so we have to multiply 450,000 by 0.05

we have this as;

450,000 * $0.05 = $22,500