Arizona Real Estate License Practice Exam 2025 – All-in-One Resource to Pass with Confidence!

To determine Barbara's first month's payment, we need to first calculate the interest for that month on the loan amount of $7500 at an interest rate of 9%.

1. Convert the annual interest rate to a monthly interest rate by dividing by 12. In this case, 9% annual interest divided by 12 months equals 0.75% per month.

2. To find the interest for the first month, multiply the loan amount by the monthly interest rate:

- Interest = Loan Amount × Monthly Interest Rate

- Interest = $7500 × 0.0075 = $56.25

3. Now, add the monthly payment amount to the calculated interest:

- First Month's Payment = Monthly Payment + Interest

- First Month's Payment = $100 + $56.25 = $156.25

This calculation accurately represents the total amount Barbara needs to pay in the first month, consisting of her monthly payment and the interest accrued on the loan. Thus, the correct answer provides a comprehensive view of how monthly payments are structured when interest is involved, which is vital for understanding loan obligations in real estate financing.