Real Estate Math

A Wyoming loan has a balance of $195,000 at 6% annual interest. The monthly payment is $1,169. How much of the first payment is principal?

A$144
B$194✓ Correct
C$225
D$244

Explanation

Monthly interest = $195,000 × 6% ÷ 12 = $975. Principal = $1,169 − $975 = $194.

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