Principal outstanding after first loan payment


Problem:

John Doeber borrowed $150,000 to buy a house. His loan cost was 6% and he promised to repay the loan in 15 equal annual payments.

Required:

Question: What is the principal outstanding after the first loan payment?

A) $143,555

B) $134,560

C) $141,200

D) None of these options

Note: Please explain comprehensively and give step by step solution.

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Finance Basics: Principal outstanding after first loan payment
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