Paris Company Buys a Building on a Plot of Land

question 77

Multiple Choice

Paris Company buys a building on a plot of land for $100 000, paying $20 000 cash and signing a 20- year mortgage payable for $80 000 at 6%. Monthly payments are $570. The first monthly payment was made in January 2013. After the first payment, what is the updated principal balance?

• A)$79 600
• B)$79 440
• C)$79 830
• D)$79 430

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Definitions:

Federal Government

The national government of the United States, which is responsible for areas like defense, foreign policy, and interstate commerce, distinct from state or local governments.

Loyalty Review System

A system implemented, especially during the Cold War in the United States, to assess the loyalty of government employees and others to the country.

Homosexuals

Refers to individuals who are romantically or sexually attracted to people of the same sex.

Susceptible to Blackmail

The vulnerability of being coerced or manipulated due to the possession of damaging information by others.