The first monthly payment will be applied to interest due before any is applied to principal. The interest due is one month's interest at the 5.5% annual rate, or
... (0.055/12)·$110,000 = $504.17
The new principal balance after the first month will be
... $110,000 + 504.17 - 568.00 = $109,936.17
Rounded to the nearest dollar, the 4th selection is appropriate:
... $109,936
