Your Brother's Business Obtained a 30-Year Amortized Mortgage Loan for $125,000

Multiple Choice

Your brother's business obtained a 30-year amortized mortgage loan for $125,000 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 Year 1?

A) $10,800.12
B) $7,229.11
C) $8,709.78
D) $8,100.09
E) $8,012.99