Finance
A Florida borrower takes out a $200,000 mortgage at 5% annual interest. What is the first month's interest payment?
A$750.00
B$833.33✓ Correct
C$1,000.00
D$416.67
Explanation
Monthly interest = Principal × Annual rate ÷ 12 = $200,000 × 0.05 ÷ 12 = $833.33. This is the interest portion of the first month's payment.
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