Consider a loan for $1,000 with an APR of 11% that has annual payments of $270.57 for the next 5 years. What is the reduction to the loan in year 1?

1) $157.41

2) $839.43

3) $120.00

4) 836.20

5) $110.00

6) $163.80

7) $842.59

8) $100.00

9) $160.57 (answer, please explain how to get $160.57)