Finance
A borrower has a $200,000 loan at 6% annual interest. The monthly payment is $1,199.10. Of the first month's payment, how much is principal?
A$199.10✓ Correct
B$169.23
C$200.00
D$1,000.00
Explanation
First month interest = $200,000 × (6%/12) = $200,000 × 0.005 = $1,000. Principal portion = $1,199.10 − $1,000 = $199.10.
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