Ace the Florida Real Estate Exam 2026 – Unlock Your Agent Superpowers!

To determine how much interest Juan pays in the second month of his loan, it's important to understand how interest on a mortgage is calculated. The interest for a given month is calculated based on the remaining loan balance at the beginning of that month. This is typically done by applying the monthly interest rate to the outstanding principal balance.

In this case, if option B indicates that Juan pays $1,042.29 in interest for the second month, it suggests that when applying the interest rate to the principal balance left after the first month's payment, this is the calculated amount. This amount reflects a typical mortgage calculation where principal payments gradually reduce the loan balance, resulting in a slightly lower interest amount over time as the months progress.

The other options represent potential interest amounts, but the value of $1,042.29 is consistent with the expected decline in interest payments as Juan makes payments towards the principal, thereby lowering the amount of interest that accrues monthly. Paying close attention to the loan terms and payment structure will clarify how the specific interest amount was derived, causing the correct choice to be $1,042.29 for the second month.