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:

Reported Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, as presented in financial statements.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings as decided by the board of directors.

Fair Value Method

An accounting approach wherein assets and liabilities are priced at their current market value to provide a more accurate valuation on financial statements.

Stock Investments

Investments in shares of public companies, aiming to generate income through dividends or capital gains.