Question 1083613
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Answer: <font color=red>Choice A) $9,176.00</font>
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Work Shown:


Year 1:
interest paid = (interest rate in decimal form)*(current balance)
interest paid = (0.06)*(10000)
interest paid = 600
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principal paid = (payment amount) - (interest paid)
principal paid = (1000) - (600)
principal paid = 400
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new balance = (old balance) - (principal paid)
new balance = (10000) - (400)
new balance = 9600
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Year 2:
interest paid = (interest rate in decimal form)*(current balance)
interest paid = (0.06)*(9600)
interest paid = 576
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principal paid = (payment amount) - (interest paid)
principal paid = (1000) - (576)
principal paid = 424
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new balance = (old balance) - (principal paid)
new balance = (9600) - (424)
new balance = <font color=red>9176</font>
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Table:
<table border=2><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></table></font>