Real Estate Math

A Maine homeowner's mortgage has a principal balance of $180,000 at 6% interest. After the first payment of $1,079.19, how much principal was paid?

A$79.19
B$179.19✓ Correct
C$279.19
D$379.19

Explanation

First month's interest = $180,000 × 6% ÷ 12 = $180,000 × 0.005 = $900.

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