What would be the remaining mortgage balance after 5 years on a $100,000 loan with a 6% interest rate and monthly payments of $599.55?

The remaining mortgage balance after five years on a $100,000 loan with a 6% interest rate and monthly payments of $599.55 can be calculated using the loan amortization formula. The initial loan amount, interest rate, and monthly payments provide the necessary inputs to determine how much of the principal has been paid off after five years of consistent monthly payments.

When a borrower makes a monthly payment, part of that payment goes toward interest, while the remainder reduces the principal. Over time, as the principal decreases, the interest portion of subsequent payments also reduces, allowing more of the payment to go toward the principal.

After five years (which equals 60 payments), the remaining balance is calculated based on the amortization schedule that tracks how much of the original loan amount has been paid down. With the defined interest rate and payment amount, the calculations show that the remaining balance after these payments has been made is $93,054.39.

This is why this option is correct: it accurately reflects the amount owed after accounting for both interest accrued and the principal paid down through the monthly payments. The other amounts either do not account for the correct amortization over the period or miscalculate the impact of interest and payment application, leading to balances that do