Final answer:
After the first payment of $2,700, which includes $2,400 in interest, the Marigold Corp's mortgage balance is reduced by the principal portion of $300, leaving a balance of d. $287,700.
Step-by-step explanation:
The Marigold Corp purchased a building signing a long-term mortgage for $288,000 with monthly payments of $2,700 at an interest rate of 10 percent. To calculate the amount owed on the mortgage after the first payment, we must first find out the interest portion of the first payment. The initial interest can be calculated as 10 percent annually of $288,000, which is $28,800 a year, or $2,400 monthly. The remainder of the first payment goes towards the principal.
Therefore, the first payment of $2,700 consists of $2,400 in interest and $300 towards the principal. When the principal payment of $300 is subtracted from the original loan amount of $288,000, the remaining balance is $287,700.
The correct answer is:
d. $287,700