What Is the Amount of Interest and Repayment of Principal

question 54

Multiple Choice

What is the amount of interest and repayment of principal balance in month 2 for a loan of $10,000, paid monthly over five years at a 7 percent APR?

• A) Interest = $101.32, Principal repayment = $57.51
• B) Interest = $57.52, Principal repayment = $140.49
• C) Interest = $157.52, Principal repayment = $40.49
• D) Interest = $107.52, Principal repayment = $40.49

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