Consider a mortgage loan of $300,000, to be amortized over thirty years with monthly payments. If the annual percentage rate on this mortgage is 4%, the amount of principal and interest in the second month's mortgage payment is closest to:

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The monthly interest rate is 0.3333% (4% annual rate divided by 12 months). The first month's interest is $1,000 ($300,000 * 0.3333%). The monthly payment is approximately $1,432.25. In the second month, the interest is calculated on the remaining principal, leading to a principal repayment of $433.69 and interest of $998.56.

Consider a Mortgage Loan of $300,000, to Be Amortized Over