Real Estate Math

A West Virginia buyer takes out a $200,000 mortgage at 7% annual interest with a monthly payment of $1,331. How much of the first month's payment goes to principal?

A$164✓ Correct
B$331
C$1,167
D$1,331

Explanation

First month's interest = $200,000 × 7% ÷ 12 = $1,166.67.

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