To determine how much of Blake's first payment went toward note reduction, we need to calculate the interest portion of the first payment and then subtract that from the total monthly payment.
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Calculate the monthly interest rate: \[ \text{Monthly interest rate} = \frac{2.4%}{12} = \frac{0.024}{12} = 0.002 \]
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Calculate the interest on the initial loan amount for the first month: \[ \text{Interest for the first month} = \text{Loan Amount} \times \text{Monthly Interest Rate} = 195,000 \times 0.002 = 390 \]
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Calculate the amount of the first payment that goes toward note reduction: \[ \text{Note Reduction} = \text{Monthly Payment} - \text{Interest} = 1023.84 - 390 = 633.84 \]
Thus, the amount of Blake's first payment that went toward note reduction is $633.84.
The correct answer is B. $633.84.