Real Estate Math

A Florida property has a 30-year mortgage with a beginning balance of $320,000 at 5%. After the first month's payment of $1,717.83, how much was applied to principal?

A$384.50✓ Correct
B$317.83
C$384.83
D$300.00

Explanation

First month's interest = $320,000 × (5% ÷ 12) = $320,000 × 0.004167 = $1,333.

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