Finance
A Massachusetts lender offers a 30-year fixed mortgage at 6.5% on a $400,000 loan. The monthly interest for the first payment is approximately:
A$2,166.67✓ Correct
B$1,950.00
C$2,600.00
D$2,333.33
Explanation
First month's interest = $400,000 × (6.5% / 12) = $400,000 × 0.005417 = $2,166.67. This is the interest portion of the first payment under a fully amortizing loan.
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