document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1083613>Question 1083613</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A business owner takes on a $10,000 loan to cover expenses. The interest rate on the loan is 6% per year. Each year, the business owner pays $1000 toward the loan. Find the balance on the loan after the second payment is made (round your answer to the nearest cent).\r<BR>\n" );
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document.write( "A) $9,176.00<BR>\n" );
document.write( "B) $8,976.05<BR>\n" );
document.write( "C) $6,788.08<BR>\n" );
document.write( "D) $5,442.78 </SPAN>\n" );
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document.write( "Answer: <font color=red>Choice A) $9,176.00</font><BR>\n" );
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document.write( "Work Shown:\r<BR>\n" );
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document.write( "Year 1:<BR>\n" );
document.write( "interest paid = (interest rate in decimal form)*(current balance)<BR>\n" );
document.write( "interest paid = (0.06)*(10000)<BR>\n" );
document.write( "interest paid = 600<BR>\n" );
document.write( "-----------------<BR>\n" );
document.write( "principal paid = (payment amount) - (interest paid)<BR>\n" );
document.write( "principal paid = (1000) - (600)<BR>\n" );
document.write( "principal paid = 400<BR>\n" );
document.write( "-----------------<BR>\n" );
document.write( "new balance = (old balance) - (principal paid)<BR>\n" );
document.write( "new balance = (10000) - (400)<BR>\n" );
document.write( "new balance = 9600<BR>\n" );
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document.write( "Year 2:<BR>\n" );
document.write( "interest paid = (interest rate in decimal form)*(current balance)<BR>\n" );
document.write( "interest paid = (0.06)*(9600)<BR>\n" );
document.write( "interest paid = 576<BR>\n" );
document.write( "-----------------<BR>\n" );
document.write( "principal paid = (payment amount) - (interest paid)<BR>\n" );
document.write( "principal paid = (1000) - (576)<BR>\n" );
document.write( "principal paid = 424<BR>\n" );
document.write( "-----------------<BR>\n" );
document.write( "new balance = (old balance) - (principal paid)<BR>\n" );
document.write( "new balance = (9600) - (424)<BR>\n" );
document.write( "new balance = <font color=red>9176</font><BR>\n" );
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document.write( "Table:<BR>\n" );
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document.write( "<tr><th>Year</th><th>Interest Paid</th><th>Principal Paid</th><th>Old Balance</th><th>New Balance</th></tr><tr><TD >1</TD><TD >$600</TD><TD >$400</TD><TD >$10,000</TD><TD >$9,600</TD></tr><tr><TD >2</TD><TD >$576</TD><TD >$424</TD><TD >$9,600</TD><TD ><font color=red>$9,176</font></TD></tr>\n" );
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