26-96 If the entire mortgage pool is repaid after the second month,what is the second month's (liquidating)principal and interest payments?
A)$99,932.90 interest and $14,989,935 principal.
B)$100,000 interest and $10,065 principal.
C)$100,000 interest and $15,000,000 principal.
D)$99,932.90 principal and $14,989,935 interest.
E)$12,000 interest and $138,000 principal.

Question

Quizplus · Accepted Answer

The second month's payment includes the interest for that month and the remaining principal balance. The interest is calculated on the outstanding principal, and the principal payment is the remaining balance after the interest is paid.

26-96 If the Entire Mortgage Pool Is Repaid After the Second