Finance

A Michigan buyer borrows $280,000 at a 7% annual interest rate. What is the approximate monthly interest for the first payment?

A$1,400
B$1,633✓ Correct
C$1,960
D$2,100

Explanation

Monthly interest = $280,000 × (7% ÷ 12) = $280,000 × 0.005833 = $1,633.

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