Paris Company Buys a Building on a Plot of Land

question 53

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 note 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) $79,430
• B) $79,600
• C) $79,830
• D) $79,440

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Definitions:

Unemployment

The condition of being jobless despite actively looking for work, typically measured as a percentage of the labor force.

Society's Preference

The collective values and priorities of a community or population, often influencing policy and market trends.

Resources Available

Refers to the total means available for economic and operational development, such as raw materials, manpower, and capital.

Economic Perspective

Viewing issues through the lens of economics, focusing on how resources are allocated, used, and managed to meet needs and achieve objectives.