Question

The following table shows a portion of a four-year amortization schedule.
A 4-year amortization schedule. The loan amount or principal is 27,800 dollars and the interest rate is 9.57 percent. The balance after 36 months is 7,972 dollars and 92 cents.
After three years, how much of the principal has been paid off?
a.
$25,176.60
b.
$22,706.64
c.
$19,827.08
d.
$5,349.52



Please select the best answer from the choices provided


A
B
C
D

Answer 1

C

Principal paid = 27,800.00 − 7,972.92 = 19,827.08, so option (c).