Final answer:
The interest portion of the first payment on a mortgage can be calculated by multiplying the loan amount by the monthly interest rate. Therefore, the interest portion of the first payment is closest to $750, option c.
Step-by-step explanation:
To calculate the interest portion of the first payment on a mortgage, we can use the formula:
Interest = (Loan amount * Monthly interest rate)
First, we need to calculate the monthly interest rate by dividing the APR by 12 and converting it to a decimal:
Monthly interest rate = 9.0% / 12 = 0.0075
Next, we can calculate the interest portion of the first payment by multiplying the loan amount by the monthly interest rate:
Interest = $100,000 * 0.0075 = $750
Therefore, the interest portion of the first payment is closest to $750, option c.