Jonny Walker purchases his first condominium downtown Toronto by obtaining a $$200,000$ mortgage loan from Borrowers Are Us Inc. Jonny Walker agrees to make monthly payments of $$1,200.$ The interest rate applied to the unpaid balance is $6\%$ per year.

Prepare the amortization schedule to be used for this loan. What is the value of interest for month $3?$

Multiple Choice

We need the effective interest rate to calculate this amount

$$1,200$

$$998$

$$1,000$

We need the coupon rate to calculate this amount