Real Estate Math

A mortgage has a monthly payment of $1,450, including $950 interest and $500 principal. What is the outstanding loan balance if the next month's interest is $945.25?

A$185,500
B$189,050✓ Correct
C$190,000
D$191,000

Explanation

If next month's interest is $945.25, then the new balance = $945.

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