Real Estate Math
A Kentucky buyer's monthly mortgage payment is $1,440. If the annual interest rate is 6% and the loan amount is $200,000, what portion of the first payment is principal?
A$240
B$440✓ Correct
C$640
D$840
Explanation
Monthly interest = $200,000 × 0.5% = $1,000. Principal = $1,440 − $1,000 = $440. Let me recheck: $1,440 − $1,000 = $440.
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