If a 9%,$100,000 loan has a balance of $83,724 and an annual payment of $13,965 is to be made,what will the allocation of principal and interest be?

Question

Quizplus · Accepted Answer

The interest for the period is calculated on the current balance of the loan. Therefore, 9% of $83,724 is $7,535.20, which is the interest portion. Subtracting this from the annual payment of $13,965 gives the principal portion, which is $6,429.80. Option B is the closest to these calculations.

If a 9%,$100,000 Loan Has a Balance of $83,724 and an Annual