26-108 If the entire mortgage pool is repaid after the second month,what is the second month's interest and principal payments?
A)$37,441 interest and $13,275 principal.
B)$13,275 principal and $37,441 interest.
C)$13,312 interest and $4,986,786 principal.
D)$4,986,786 interest and $37401 interest.
E)$37,401 interest and $4,986,786 principal.

Question

Quizplus · Accepted Answer

The second month's interest is $37,401, and the principal repayment is $4,986,786, which is the remaining balance of the mortgage pool after the first month's payments.

26-108 If the Entire Mortgage Pool Is Repaid After the Second