Real Estate Math

A Maine buyer finances $280,000 at 7% for 30 years. The monthly payment factor is $6.65 per $1,000. Monthly P&I is $1,862. In month 1, how much principal is paid?

A$229✓ Correct
B$262
C$296
D$327

Explanation

Month 1 interest = $280,000 × 7% ÷ 12 = $1,633.33.

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