Finance
A buyer obtains a $200,000 mortgage at 6% annual interest, interest-only for the first month. What is the first month's interest payment?
A$600
B$1,000✓ Correct
C$1,200
D$2,000
Explanation
Monthly interest = Principal × Annual Rate ÷ 12 = $200,000 × 0.06 ÷ 12 = $200,000 × 0.005 = $1,000. The first month's interest-only payment is $1,000.
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