Finance

A Maryland borrower takes a 30-year fixed mortgage at 7% interest on a $350,000 loan. The monthly P&I payment is approximately $2,329. How much interest is paid in the first month?

A$1,633
B$2,042✓ Correct
C$2,329
D$4,083

Explanation

$350,000 × (7%/12) = $350,000 × 0.005833 = $2,042 interest in the first month. To solve this, multiply the relevant values: $350,000 and $2,329 at 7%.. The correct answer is $2,042.. This is a common calculation on the Maryland real estate exam.

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