Suppose that a mortgage bank is willing to lend at an interest rate that makes the present value of an annuity that pays $1 per month for 360 months (30 years) equal to $200. If you were to borrow $1,000,000 from this bank in the form of a 30-year fully amortizing mortgage, what would your monthly mortgage payments be?
A) $200
B) $5000
C) $2778
D) None of the above
