Question: I wish to see step-by-step answer (plugging in the numbers) The loan taken of amount $40,000 to buy two-wheelers at the rate of 12% compounded

I wish to see step-by-step answer (plugging in the numbers)

The loan taken of amount $40,000 to buy two-wheelers at the rate of 12% compounded monthly for a period of 4 months. The amortization schedule for the following is given below which is incomplete. The borrower requires to know what will be the principal payment in 3rd month to help him to calculate the requirement when the monthly interest rate is 0.01.(Round off the calculations to two decimal places) Month Unpaid Balance Interest Payment Principal Payment Total Payment New Balance 1 $40,000 $400 $30,148.76 2 $30,148.76 $301.49 $20,199.01 3 $20,199.01 $201.99 $10,149.76 4 $10,149.76 $101.50 $0 Choose an answer

A The Principal payment in 3rd month is $9,949.75.

B The Principal payment in 3rd month is $10,453.23.

The Principal payment in 3rd month is $10,049.25.

D The Principal payment in 3rd month is $9,851.24.

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