Finance
A buyer in Minnesota obtains a $250,000 mortgage at 6% annual interest. What is the monthly interest for the first month?
A$1,250✓ Correct
B$1,500
C$1,000
D$750
Explanation
Monthly interest = Loan balance x Annual rate / 12 = $250,000 x 0.06 / 12 = $1,250. This is the interest portion of the first monthly payment; the remainder of the payment reduces the principal balance.
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