Real Estate Math
A property is financed with a $150,000 loan at 7% annual interest for 30 years. The monthly P&I payment is $997.95. After the first payment, approximately how much of the payment goes to principal?
A$997.95
B$122.95✓ Correct
C$875.00
D$1,050.00
Explanation
First month interest = $150,000 × 7% ÷ 12 = $875.00. Principal portion = $997.95 − $875.00 = $122.95.
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