Real Estate Math
A buyer obtains a 30-year $180,000 mortgage at 6.5% annual interest. The monthly payment (principal and interest) is $1,138.24. After the first payment, what is the approximate remaining loan balance?
A$179,836.76✓ Correct
B$179,900.00
C$179,940.00
D$180,000.00
Explanation
First month's interest = $180,000 × (6.5% ÷ 12) = $180,000 × 0.005417 = $975. Principal reduction = $1,138.24 − $975 = $163.24. Remaining balance = $180,000 − $163.24 = $179,836.76.
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