The next 2 questions utilize the following data: (please work out the full calculation, using formula)

You borrow $50,000. This loan will be paid back over 6 years, with payments made at the end of each year. The interest rate charged on the loan is 9%.

What is the balance of the loan at the end of year one?

A. $38,568 B. $39,731 C. $41,229 D. $43,354

How much interest was paid in year three? A. $3,250 B. $4,115 C. $4,985 D. $5,221