Real Estate Math
A Kentucky property owner makes monthly mortgage payments of $1,250. The annual interest rate is 6% and the loan balance is $200,000. How much of the first month's payment goes toward principal?
A$150
B$250✓ Correct
C$350
D$450
Explanation
Monthly interest = $200,000 × (6%/12) = $200,000 × 0.005 = $1,000. Principal = $1,250 − $1,000 = $250.
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