Real Estate Math

A NH buyer finances $320,000 at 7% for 30 years. If 40% of the first monthly payment is applied to principal, how much goes to principal?

A$747.97
B$1,121.95
C$1,868✓ Correct
D$748

Explanation

First month's interest = $320,000 × 7% / 12 = $1,866.67.

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