Finance
A Colorado homeowner with a $300,000 mortgage at 8% makes interest-only payments for the first year. What is the total interest paid in Year 1?
A$18,000
B$24,000✓ Correct
C$28,000
D$36,000
Explanation
Annual interest on an interest-only loan = Loan Balance × Interest Rate = $300,000 × 8% = $24,000 per year ($2,000/month). No principal is repaid with interest-only payments.
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