Suppose you purchase a home and obtain a 15-year fixed-rate loan of $185,000 at an annual interest rate of 7.5%. Of the second month's mortgage payment, how much is applied to the principal?

a. $562.21
b. $558.72
c. $1,152.76
d. $1,156.25
e. $1,714.97

a. $562.21

Mathematics

You might also like to view...

Solve the problem.Prepare a balance sheet for Jake's Janitorial Service for December 31 of last year. The company assets are cash accounts receivable merchandise inventory and equipment The liabilities are accounts payable -4.0px;" /> wages payable and mortgage note payable The owner's capital is $123,000.

A. Jake's Janitorial Service Balance Sheet
Total assets: $235,000
Total liabilities: $99,000
Total liabilities and owner's equity: $123,000

B. Jake's Janitorial Service Balance Sheet
Total assets: $172,000
Total liabilities: $112,000
Total liabilities and owner's equity: $123,000

C. Jake's Janitorial Service Balance Sheet
Total assets: $235,000
Total liabilities: $112,000
Total liabilities and owner's equity: $235,000

D. Jake's Janitorial Service Balance Sheet
Total assets: $235,000
Total liabilities: $112,000
Total liabilities and owner's equity: $123,000