Overseas Bank Is Pooling 50 Similar and Fully Amortized Mortgages

Multiple Choice

Overseas bank is pooling 50 similar and fully amortized mortgages into a pass-through security.The face value of each mortgage is $100,000 paying 180 monthly interest and principal payments at a fixed rate of 9 percent per annum.

For the first monthly payment,what are the interest and principal portions of the payment?

A) $37,500 principal and $13,213 principal.
B) $37,500 interest and $13,213 principal.
C) $37,500 principal and $7,809 interest.
D) $37,500 interest and $7,809 principal.