Able Electronics Company Issues a $1000000 8% 20-Year Mortgage Note

question 160

Multiple Choice

Able Electronics Company issues a $1000000 8% 20-year mortgage note on January 1. The terms provide for annual installment payments exclusive of real estate taxes and insurance of $101852. After the first installment payment the principal balance is

• A) $1000000.
• B) $920000.
• C) $978148.
• D) $898148.

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