Jonny Walker purchases his first condominium downtown Toronto by obtaining a $200,000 mortgage loan from Borrowers Are Us Inc. Jonny Walker agrees to make monthly payments of $1,200. The interest rate applied to the unpaid balance is 6% per year.

Prepare the amortization schedule to be used for this loan. What is the unpaid balance of the mortgage loan at the end of the third month?

$200,000

$199,599

We need the effective interest rate to calculate this amount

$199,800

$199,397