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