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To buy your first home, you take out a 15 year (fully amortizing) mortgage for $400,000...

To buy your first home, you take out a 15 year (fully amortizing) mortgage for $400,000 which requires equal yearly payments. The effective annual interest rate is 3.6%. How much interest do you pay off in year 3?

$13,659.21

$12,891.75

$22,085.73

$23,704.52

None of these

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used. If you need with financial formula, let me know, will do that also. Thank you.

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