Problem:
The Jordan family recently Purchased their first home. The house has a 15-year (180-month), $165,000 mortgage. The mortgage has a nominal annual interest rate of 7.75%. All mortgage payments are made at the end of the month.
Required:
Question: What will be the remaining balance on the mortgage after one year (right after the 12th payment has been made)?
A. $152,879.31
B. $155,362.50
C. $158,937.91
D. $160,245.39
E. $160,856.84
Note: Provide support for your underlying principle.