Answer-first summary for fast verification
Answer: $118,526.38
**Correct answer: C. $118,526.38** Compute the next month's interest and principal: - Interest portion of the next payment = $118,652.58 \times 6.0\% / 12 = $593.26 - Principal portion of the payment = $719.46 - $593.26 = $126.20 - New loan balance = $118,652.58 - $126.20 = $118,526.38 So the balance after the next monthly payment is **$118,526.38**.
Author: Manit Arora
Ultimate access to all questions.
On January 1st, the Smiths bought a house with a 30-year, 6.0% fixed-rate $120,000 mortgage loan; i.e., the 6.0% stated annual rate is payable (compounds) monthly. The monthly payment is $719.46. After eleven months and eleven monthly payments, on November 1st, the loan balance is $118,652.58. After one further monthly payment, at the end of December, what will be the new loan balance?
A
$117,933.12
B
$118,133.12
C
$118,526.38
D
$118,611.25
No comments yet.