Finance

A Maine seller carries back a $75,000 second mortgage for the buyer at 6% for 5 years. The annual interest income to the seller from this mortgage is approximately:

A$3,375
B$4,500✓ Correct
C$5,000
D$5,625

Explanation

Annual interest (first year, approximate) = $75,000 × 6% = $4,500. To solve this, multiply the relevant values: $75,000 at 6%..

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