Real Estate Math

A Vermont buyer takes out a 30-year, $300,000 mortgage at 7% annual interest with a monthly payment of approximately $1,996. After the first payment, how much of the payment goes toward principal?

A$246✓ Correct
B$296
C$1,750
D$996

Explanation

Monthly interest = $300,000 × (0.07 ÷ 12) = $300,000 × 0.

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