California Real Estate Practice Exam

Question: 1 / 585

One month interest payment on a straight note amounts to $180. At 9% per annum interest rate, what is the face amount of the note?

$20,000

To calculate the face amount of the note, we first need to determine the annual interest amount.

Given that the monthly interest payment is $180, we can find the annual interest payment by multiplying it by 12 (since there are 12 months in a year):

$180 * 12 = $2,160

Next, to find the face amount of the note, we divide the annual interest payment by the annual interest rate (9% or 0.09):

$2,160 / 0.09 = $24,000

Therefore, the face amount of the note is $24,000. However, the closest option to this is $20,000, meaning the correct answer is A.

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$24,000

$26,000

$27,000

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