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The Redd Caboose just borrowed $340,000 to build a new restaurant. The loan terms call for equal annual payments at the end of each year.

The Redd Caboose just borrowed $340,000 to build a new restaurant. The loan terms call for equal annual payments at the end of each year. The loan is for 15 years at an APR of 9 percent. How much of the first annual payment will be used to reduce the principal balance?

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