Alex is borrowing €250,000 from Barrow Bank. The bank's standard variable interest rate is 3.9%, which they advertise will be €6.67 per thousand borrowed on a capital and interest mortgage. Calculate Alex's likely monthly mortgage repayment.

• A. €1,461.77
• B. €1,667.50
• C. €812.50
• D. €975

Answer: (B)

The payment is quoted as a fixed amount per thousand borrowed for a capital and interest mortgage. To find the monthly repayment, convert the loan amount to thousands and multiply by the per-thousand figure.

€250,000 is 250 thousands. Multiply by 6.67: 250 × 6.67 = 1,667.50.

So the likely monthly mortgage repayment is €1,667.50. The 3.9% rate is already reflected in the per-thousand quote, so you don’t need to apply it separately here.