Real Estate Math
A $250,000 loan at 5% annual interest has a monthly payment of $1,342. How much of the first payment goes to interest?
A$1,042✓ Correct
B$1,000
C$1,100
D$833
Explanation
Monthly interest = $250,000 × 5% ÷ 12 = $1,041.67, approximately $1,042. To solve this, multiply the relevant values: $250,000 and $1,342 at 5%.. The correct answer is $1,042.. This is a common calculation on the Alabama real estate exam.
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