Suppose you have taken out a $125,000 fully-amortizing fixed rate mortgage loan that has a term of 15 years and an interest rate of 6%. After your first mortgage payment, how much of the original loan balance is remaining?
A) $1,054.82
B) $120,603.78
C) $124,570.18
D) $124,875.56

Question

Quizplus · Accepted Answer

The monthly payment is calculated using the loan amount, interest rate, and term. After the first payment, the remaining balance is the original loan minus the principal portion of the first payment.

Suppose You Have Taken Out a $125,000 Fully-Amortizing Fixed Rate