Real Estate Math
A property has a $250,000 loan at 7.2% annual interest. The monthly payment is $1,700. How much of the FIRST monthly payment goes to principal?
A$1,500
B$1,200
C$200✓ Correct
D$700
Explanation
Monthly interest = $250,000 × (7.2% ÷ 12) = $250,000 × 0.006 = $1,500. Principal portion = Monthly payment − Interest = $1,700 − $1,500 = $200.
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