Paris Company Buys a Building on a Plot of Land

Multiple Choice

Paris Company buys a building on a plot of land for $100 000, paying $20 000 cash and signing a 20- year mortgage payable for $80 000 at 6%. Monthly payments are $570. The first monthly payment was made in January 2013. After the first payment, what is the updated principal balance?

A) $79 600
B) $79 440
C) $79 830
D) $79 430