Question

You purchase a home for $253,600.00 with a mortgage rate of 3.75% APR. How much

interest is due after your first month?
(1 point)
$79.25
$660.42
$792.50
$951.00

Answer 1

792.50 C

Explanation:

I just took the test.

The next answer is D. $707.50

Answer 2

$792.50

Explanation:

As the mortgage rate is 3.75% APR , One has to pay 3.75% of the amount of home in a year as Interest .

Amount of home = $253,600.00

One year interest one has to pay in a year =
`(3.75)/(100)`×253,600

= $9510.

So, In one month , he has to pay amount $
`(9510)/(12)` .

= $792.5.