Finance
A Kentucky buyer obtains a 30-year, $220,000 mortgage at 5.75% with a monthly payment of $1,284. After 5 years, the remaining balance is approximately $207,000. How much equity has been built through principal paydown?
A$7,000
B$13,000✓ Correct
C$15,000
D$20,000
Explanation
Principal paid = Original loan − Remaining balance = $220,000 − $207,000 = $13,000. To solve this, multiply the relevant values: $220,000 and $1,284 at 5.
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