How Much Interest Is Paid After the First Payment Interval

question 20

Multiple Choice

How much interest is paid after the first payment interval on a $100 000 mortgage? The mortgage is amortized over 25 years and the payments are monthly. The interest rate is 6% compounded semi-annually. Round your answer to the nearest dollar.

• A) $146
• B) $640
• C) $527
• D) $494
• E) $401

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