9514 1404 393
Answer:
d) 70,924.74
Step-by-step explanation:
The new principal after a payment is the difference between the old principal and the amount of the payment applied to principal. That applied amount is the difference between the payment amount and the interest due.
The interest due each month is computed at a rate equal to the annual rate divided by 12. For the first month, the interest due is ...
$71,000 × 12%/12 = 0.01 × $71,000 = $710
Then the amount of the payment applied to principal is ...
$785.26 -710.00 = $75.26
And the new principal after the first payment is ...
$71,000 -75.26 = $70,924.74
