Finance
An Arizona homebuyer obtains a $280,000 mortgage at 7% annual interest. What is the first month's interest payment?
A$1,400.00
B$1,633.33✓ Correct
C$1,960.00
D$2,100.00
Explanation
First month's interest = Principal × Annual rate ÷ 12 = $280,000 × 0.07 ÷ 12 = $19,600 ÷ 12 = $1,633.33.
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