medium · Asset-Backed Securities

In a sequential-pay Auto ABS transaction, Month 1 begins with a 90 million Class A and a10 million Class B. Pool interest collections are 833,333, and total principal collections are3,316,140. After paying a 83,333 servicing fee and516,667 in bond interest, all remaining principal is applied to the waterfall.

What is the ending balance of Class A?

  1. $86,683,860
  2. $86,450,527
  3. $87,017,193
  4. $89,483,333

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