Real Estate Math
A buyer obtains a $200,000 mortgage at 6% for 30 years. The monthly principal and interest payment (PI) is $1,199.10. After the first month, how much of the payment goes to principal?
A$199.10✓ Correct
B$1,000.00
C$1,199.10
D$800.00
Explanation
First month's interest = $200,000 × 6% ÷ 12 = $1,000. Principal = $1,199.10 − $1,000 = $199.10. To solve this, multiply the relevant values: $200,000 and $1,199.10 at 6%.. The correct answer is $199.10.. This is a common calculation on the Louisiana real estate exam.
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