Finance
A borrower obtains a $400,000 loan at 6% annual interest. What is the first month's interest-only payment?
A$1,800
B$2,000✓ Correct
C$2,400
D$3,000
Explanation
$400,000 × 6% = $24,000 per year ÷ 12 = $2,000 per month. For an interest-only payment, simply multiply the principal by the monthly interest rate (6% ÷ 12 = 0.5%).
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