Real Estate Math
A Kentucky property is purchased for $450,000 with a 20% down payment and a 30-year loan at 5%. The monthly payment (P&I) is approximately $1,932. After the first payment, approximately how much principal has been paid?
A$232
B$432✓ Correct
C$932
D$1,232
Explanation
First month's interest = $360,000 × (5%/12) = $360,000 × 0.004167 = $1,500. Principal = $1,932 − $1,500 = $432.
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