Assume the following information for a car note:
Original loan amount = $27,500 Annual interest rate = 7.8% Term of loan = 36 months
How much principal and interest was paid in the first year, and what is the principal balance on the loan after year one?
- $8,463.98 of principal; $1,846.66 of interest; balance due $19,036.02
- $8,586.89 of principal; $1,657.15 of interest; balance due $18,913.11
- $7,670.13 of principal; $1,720.20 of interest; balance due $19,829.87
- $7,733.19 of principal; $1,718.18 of interest; balance due $19,766.81
- $8,518.93 of principal; $1,791.65 of interest; balance due $18,300.60