Answer: $99,865

For an 8.0% annual yield on a monthly mortgage: - Monthly rate \(r = 8\%/12 = 0.6667\% = 0.0066667\) - Term \(n = 360\) - Principal \(PV = 100{,}000\) First compute the monthly payment: \[ PMT = 100{,}000 \cdot \frac{0.0066667(1.0066667)^{360}}{(1.0066667)^{360}-1} \approx 733.76 \] Then compute the balance after 2 payments: \[ B_2 = PV(1+r)^2 - PMT\left(\frac{(1+r)^2 - 1}{r}\right) \] Substituting the values gives a remaining balance of approximately **$99,865**. So the correct answer is **B**.

Author: Manit Arora