Real Estate Math
A Missoula home buyer is applying for a 30-year mortgage. Principal and interest payment is $1,450/month. First month's interest is $1,200. How much principal is paid in the first month?
A$1,450
B$250✓ Correct
C$1,200
D$150
Explanation
Monthly payment = $1,450. Interest portion = $1,200. Principal reduction = $1,450 - $1,200 = $250. Using the values given ($1,450, $1,200), apply the appropriate formula.. The correct answer is $250.. This is a common calculation on the Montana real estate exam.
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