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 note 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) $79,430
B) $79,600
C) $79,830
D) $79,440