A 9% Amortized Loan with a November 1 Balance of $40,000

Multiple Choice

A 9% amortized loan with a November 1 balance of $40,000 requires the payment of principal and interest at the first of each month. If prorating is done as of the 20ᵗʰ of November, the

A) buyer owes the seller $100.
B) buyer owes the seller $200.
C) seller owes the buyer $100.
D) seller owes the buyer $200.