Your Brother's Business Obtained a 30-Year Amortized Mortgage Loan for $400,000

Multiple Choice

Your brother's business obtained a 30-year amortized mortgage loan for $400,000 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) $22,575.74
B) $23,969.30
C) $27,871.28
D) $26,199.00
E) $25,641.58