A company signed a 14%, 10 year note for $160,000 and paid an installment of $2,600 for the first month. After the first payment, what is the principal balance?
A) $159,267
B) $150,227
C) $151,573
D) $154,200
Answer: A) $159,267
$159,267 because (160,000)(14%)(1/12)=1,867 then 2,600-1,867=733 then 160,000-733=159,267
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