Real Estate Math
An Indiana mortgage has a $320,000 principal balance. The monthly payment is $1,900. In month 1, the interest portion (at 5.5% annual rate) is $1,466.67. What is the principal reduction in month 1?
A$366.67
B$433.33✓ Correct
C$466.67
D$533.33
Explanation
Interest in month 1 = $320,000 × 5.5% ÷ 12 = $320,000 × 0.004583 = $1,466.67. Principal reduction = $1,900 − $1,466.67 = $433.33.
Related Indiana Real Estate Math Questions
- A triple net lease in Indianapolis requires the tenant to pay $24,000 annual base rent plus the tenant's pro-rata share of $60,000 in operating expenses. The tenant occupies 25% of the building. What is the tenant's total annual payment?
- An Indiana broker sells a property for $285,000 and earns a 5.5% commission. What is the total commission?
- A property is assessed at 80% of its $320,000 market value. The tax rate is $2.50 per $100 of assessed value. What are the annual property taxes?
- A real estate investor in Indiana purchases a property for $250,000 with 25% down. The annual NOI is $22,500. What is the cap rate?
- An Indiana seller's property is listed at $475,000. After negotiations, the buyer and seller agree on $455,000. What was the negotiated percentage below asking price?
- A comparable sale in an Indiana appraisal sold for $295,000. The comparable has a garage worth $8,000 that the subject property lacks. What adjusted sale price is used for the subject?
- A property in Indianapolis sells for $615,000 with a 6% commission. What is the total co-broke (buyer's broker) share if the split is 2.8% to the buyer's broker?
- An Indiana homeowner in Bloomington wants to refinance $210,000. The closing costs are $5,250 and the new monthly payment saves $175/month. What is the break-even period in months?
Practice More Indiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Indiana Quiz →