Suppose you borrowed $85,000 at a rate of 9.5% and must repay it in 7 equal installments at the end of each of the next 7 years. By how much would you reduce the amount you owe in the first year? In other words, calculate the amount of principal repaid in the first year. (Hint: First calculate the total payment on the loan, then calculate the interest owed in the first year and finally subtract the interest figure from the total payment). \begin{tabular}{|} $8,075 \\ $17,173.06 \\ $7,608.16 \\ $15,683.16 \\ $9.098.06 \end{tabular}