Lou Lewis borrows $10,000 to be completely repaid over 10 years at 8%. Repayment of principal in the first year is ________.
A) $1,493
B) $693
C) $690
D) $885
C) $690
A = $10,000/6.710
A = $1,490 annual payment less interest in year 1 ($10,000 × 8%) of $800 = $690
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