Real Estate Math
A Virginia buyer is borrowing $350,000 at 6.5% for 30 years. Approximately what percentage of the first month's payment is interest?
AAbout 50%
BAbout 65%
CAbout 90%✓ Correct
DAbout 75%
Explanation
First month's interest = $350,000 × 6.5% ÷ 12 = $1,895.83. For a 30-year loan at 6.5%, the monthly payment (principal + interest) is approximately $2,213. Interest portion = $1,895.83 ÷ $2,213 ≈ 86% ≈ about 90%.
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