Finance
A NJ borrower obtains a 30-year fixed mortgage for $320,000 at 6.5%. The monthly payment (P&I) is approximately $2,023. After the first payment, the loan balance is approximately:
A$319,977✓ Correct
B$317,977
C$318,000
D$319,310
Explanation
First month interest = $320,000 × 6.5% ÷ 12 = $1,733. Principal paid = $2,023 – $1,733 = $290 (approximately). Remaining balance ≈ $320,000 – $290 = $319,710. In the early years of amortization, very little principal is paid off.
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