Final answer:
The borrower's monthly payment for an interest-only loan at 6% can be calculated using the formula (Loan Amount * Interest Rate) / 12. For a $100,000 loan, the monthly payment would be $500.
Step-by-step explanation:
The borrower takes out an interest-only loan at 6%. This means that the borrower will only be required to pay interest on the loan amount, without any principal payments. To calculate the monthly payment, we need to multiply the loan amount by the interest rate and divide it by 12 (since there are 12 months in a year).
Let's say the borrower takes out a loan of $100,000. The monthly payment would be calculated as follows:
Monthly Payment = (Loan Amount * Interest Rate) / 12 = (100,000 * 6%) / 12 = $500.
Therefore, the monthly payment for a $100,000 interest-only loan at 6% would be $500.