Answer:
$79,913
Explanation:
The computation of the loan balance after two months loan payments is shown below:
$80,000 × 10% = $8,000 ÷ 12 =$666.67
$710 - $666.67 = $43.33
$80,000 - $43.33 = $79,956
$79,956 × 10% = $7,995 ÷ 12 = $666.30
$710 - $666.30 = $43.70
$79,956 - $43.70 = $79,912.8 i.e. $79,913
Hence, the loan balance after two months is $79,913
