Real Estate Math

A 30-year Virginia mortgage of $200,000 at 5% has a monthly P&I payment of approximately $1,073. After the first year, approximately how much principal has been paid?

A$240✓ Correct
B$3,100
C$3,600
D$4,200

Explanation

In the first year of a 5% 30-year mortgage, most of each payment is interest. Annual payments = 12 × $1,073 = $12,876.

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