Question

Dagny Taggart has just purchased a home and taken out a​ $400,000 mortgage. The mortgage has a 30−year term with monthly payments and has an APR of​ 5.4%.

The total amount of interest that Dagny will pay during the first three months of her mortgage is closest​ to:

A. ​$1345

B. ​$6740

C. ​$5395

D. $5380

Answer 1

Mortgage = $400000

Number of monthly payment = 30*12 =360

Monthly Rate = 5.4/12 = 0.45%

Interest Paid in First Month = 1800

Interest Paid in First Month = 1798

Interest Paid in First Month = 1796

Total Interest Paid = 5394 Answer

Option C is correct.