Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annuities. Mortgages are the reverse of annuities, because you get a lump-sum amount as a loan in the beginning, and then you make monthly payments to the lender.

Youve decided to buy a house that is valued at $1 million. You have $250,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase price. Your bank has approved your $750,000 mortgage, and is offering a standard 30-year mortgage at a 10% fixed nominal interest rate (called the loans annual percentage rate or APR). Under this loan proposal, your mortgage payment will be ____________ per month. (Note: Round the final value of any interest rate used to four decimal places.)

a. 10,201.43

b. 8,226.96

c. 8,885.12

d. 6,581,57