On $1$ January $2019,$ Bratios Company purchases

equipment and signs a $6-$year mortgage payable

for $$110,000$ at $15\%.$ The mortgage will be paid in

equal annual instalments of $$29,066,$ beginning $1$

January $2020.$

Calculate the balance of the Mortgage payable

account after the payment of the first instalment. $*$

$$82,983$

$$16,500$

$$80,934$

$$97,434$

I mean, we are talking about "balance of the Mortgage payable

account", why we have to calculate the interest here?