Answer:
$671.
Explanation:
We are asked to find amount of monthly interest on a loan amount of $115,000 with an APR of 7%.
, where,
I = Amount of interest,
P = Principal amount,
r = Annual interest rate in decimal form,
t = Time in years.
First of all, we need to convert our given rate in decimal form and time in years as:

1 month = 1/12 year



Therefore, the monthly interest is $671 and option B is the correct choice.