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 second month?

Multiple Choice

• $199,599

• $200,000

• We need the effective interest rate to calculate this amount

• $199,397

• $199,800