Answer:
Principal Balance at the end of the second payment or year:
$198,350.24
Explanation:
Schedule
start principal start balance interest end balance end principal
1 $196,000.00 $196,000.00 $11,760.00 $208,935.12 $197,175.12
2 $197,175.12 $208,935.12 $12,536.11 $222,646.35 $198,350.24
Cost of Home = $245,000
less down payment = 49,000 (20% of $245,000)
Starting principal = $196,000