You Have Just Taken Out an Installment Loan for $100,000

question 95

Multiple Choice

You have just taken out an installment loan for $100,000.Assume that the loan will be repaid in 12 equal monthly installments of $9,456 and that the first payment will be due one month from today.How much of your third monthly payment will go toward the repayment of principal?

• A) $7,757.22
• B) $6,359.12
• C) $7,212.50
• D) $7,925.88
• E) $8,333.33