Use the Following Information to Answer the Question(s)below

question 52

Multiple Choice

Use the following information to answer the question(s) below.
Dagny Taggart has just purchased a home and taken out a $400,000 mortgage.The mortgage has a 30-year term with monthly payments and has an APR of 5.4%.
-The total amount of interest that Dagny will pay during the first month of her mortgage is closest to:

• A)$1110.
• B)$1785.
• C)$1800.
• D)$2245.

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Definitions:

Paid-In Capital Accounts

Funds raised by a company through the sale of equity or stock, representing the capital contributed by investors in exchange for shares.

Carrying Value

The value of an asset listed in a company's financial records, determined by subtracting its accumulated depreciation from its initial purchase price.

Common Stock

Common stock represents ownership shares in a corporation, entitling holders to vote on corporate matters and potentially receive dividends.

Bond Indenture

A legal document that sets forth the terms of the bond issue.