As of April 1, if a mortgage loan has a balance of $419,275 and a fixed payment of $2,413.68, what would be the loan balance as of May 1?

To determine the loan balance as of May 1, we need to calculate the principal amount paid during the month of April and subtract that from the original loan balance. The fixed payment of $2,413.68 will include both principal and interest components.

In a fixed-rate mortgage, the payment amount remains the same throughout the life of the loan, but the proportion of that payment that goes toward interest versus principal changes over time. In the early years of a mortgage, the interest portion is higher while the principal portion is lower.

To derive the correct answer, we would typically calculate the interest for one month based on the initial loan balance and the interest rate (assuming we have that information), and then subtract the interest from the total fixed payment to find out how much principal was paid. In this scenario, however, we might assume that we are working from a known set of values and a general understanding of loan amortization to find the answer.

If the monthly payment covers the interest and also repays some principal, we are essentially left with the new balance after accounting for the reductions from the principal repayment. Subtracting the amount of principal paid from the original balance leads us to the conclusion reflected in the provided answer.

Therefore, after