A level payment, fixed-rate, fully amortizing mortgage loan for $220,000 is obtained with a term of 15 years, a mortgage rate of 6.0% with monthly compounding, and a monthly payment of $1,856.49. Assuming that the borrower does not prepay or default, the principal that is repaid during the first 3 months is closest to:
B is correct according to the table below showing the remaining principal balance after 3 monthly payments.
| Month | Beginning Balance | Mottgage Payment | Interest | Principal Repayment | Ending Balance |
| 1 | 220,000.00 | 1,856.49 | 1,100.00 | 756.49 | 219,243.51 |
| 2 | 219,243.51 | 1,856.49 | 1,096.22 | 760.27 | 218,483.24 |
| 3 | 218,483.24 | 1,856.49 | 1,092.42 | 764.07 | 217,719.17 |