Real Estate Math
A mortgage of $150,000 at 7% annual interest has a monthly payment of $998. How much of the first payment is principal?
A$123✓ Correct
B$875
C$998
D$250
Explanation
Monthly interest = $150,000 × 7% ÷ 12 = $875. Principal = $998 − $875 = $123. To solve this, multiply the relevant values: $150,000 and $998 at 7%.. The correct answer is $123.. This is a common calculation on the Alabama real estate exam.
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