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Thompson borrowed $1,200,000 from his bank. The annual rate on his loan is 5% and he has to repay it with 24 equal annual payments.
Thompson borrowed $1,200,000 from his bank. The annual rate on his loan is 5% and he has to repay it with 24 equal annual payments. For his first payment, how much of it is used to reduce his outstanding balance (or principal)? A) $50,000
B) $32,458
C) $26,965
D) $22,371
E) $41,885
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