The egg house just borrowed $660,000 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 8.35 percent. how much of the first annual payment will be used to reduce the principal balance

 $23,653.18

Explanation:

Let 



Then, we can use the mortgage formula because we can treat N as the number of payments and the rate that we'll be using in the formula is the apr = 8.35%. 

So, the annual payment is calculated as: (Note: change 8.35% to decimal)



Now, we need to calculate the interest amount in the first year, which is given by

Interest Amount = rP
                               = (0.0835)(660,000)
Interest Amount = $55,110

Now, we let  be the amount to be reduced from the principal balance. Then,



Hence, $23,653.18 will be used to reduce the prinicipal balance.

                        
 

Ithink the most approximate answer would be b.i hope it you!