Answer:
$88812.33
Step-by-step explanation:
Principal = $89,000
But there's a sales tax of 4.2%
Tax = (4.2 / 100) * 89000 = $3738
Total cost of the mobile house = $89000 + $3738 = $92,738
However, they made a down payment of $3000
Balance after down payment = $92,738 - $3000 = $89,738
They've also paid the first monthly payment of $925.67
Balance after first monthly payment =
$89,738 - $925.67 = $88,812.33
The principal balance after applying there first monthly payment is $88,812.33