Answer: $779,500
Explanation:
The Principal and Interest payment (P&L) as the name implies, include both the interest and the principal.
The interest is calculated based on the loan balance(loan still owed) and the rest will go towards settling the loan.
Interest = 5%/ 12 months * 780,000
= $3,250
Principal = 3,750 - 3,250
= $500
Balance on loan:
= 780,000 - 500
= $779,500
