On January 1, Pablo Borrows $5,000 with a Fixed Interest

question 55

Multiple Choice

On January 1, Pablo borrows $5,000 with a fixed interest rate on the loan of 10% and a loan term of 2 years. He will be making monthly payments of $230.72. How much of Pablo's first loan payment on February 1 would be principal?

• A) $189.05.
• B) $190.63.
• C) $225.50.
• D) $250.28.

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