Question: Sam's borrows $20,000 payable over five years, with an interest rate of 15% per annum on the unpaid balance. The repayment schedule calls for five

Sam's borrows $20,000 payable over five years, with an interest rate of 15% per annum on the unpaid balance. The repayment schedule calls for five equal annual payments, the first occurring at the end of year 1. How much principal will be reduced in the 1st year?

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