Real Estate Math

A 6% mortgage on a $250,000 loan has a monthly payment of $1,498.88. After the first payment, what is the remaining loan balance?

A$249,751.12✓ Correct
B$248,750
C$249,501.12
D$248,501.12

Explanation

First month interest: $250,000 × 0.06 ÷ 12 = $1,250. Principal in first payment: $1,498.88 − $1,250 = $248.88. Remaining balance: $250,000 − $248.88 = $249,751.12.

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