Finance
A South Carolina borrower takes a $200,000 mortgage at 6% annual interest. What is the first month's interest payment using simple interest?
A$833
B$1,000✓ Correct
C$1,200
D$2,400
Explanation
Monthly interest = Principal × Annual Rate ÷ 12. $200,000 × 6% ÷ 12 = $200,000 × 0.005 = $1,000 for the first month.
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