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27 February, 07:54

If a borrower obtains an interest-only loan of $112,500 at an annual interest rate of 6%, what is the monthly interest payment (rounded to the nearest $1) ?

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  1. 27 February, 08:01
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    Loan amount = $112,500

    Annual interest rate = 6% = 0.06

    Interest per year = Principal amount * Annual interest rate = 112,500*0.06 = $6,750

    Monthly payment interest = Annual interest/12 = $6,750/12 = $562.50
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