Finance
A borrower takes out a 30-year fixed-rate mortgage of $240,000 at 6% annual interest. What is the approximate annual interest in the first year?
A$9,600
B$12,000
C$14,400✓ Correct
D$16,800
Explanation
Annual interest (first year) ≈ $240,000 × 6% = $14,400. In early years of an amortizing mortgage, most of the payment goes toward interest.
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