Your Sister's Pet Supplies Business Obtained a 30-Year Amortized Mortgage

Multiple Choice

Your sister's pet supplies business obtained a 30-year amortized mortgage loan for $250,000 at a nominal annual rate of 7.0%, with 360 end-of-month payments.The firm can deduct the interest paid for tax purposes.What will the interest tax deduction be for for the first year of the loan? (Assume she took out the loan on January 1.)

A) $17,419.55
B) $17,593.75
C) $17,769.68
D) $17,947.38
E) $18,126.85