Answer:
Principal payable in year 1 = $17,258
Explanation:
Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.
The annual installment is computed as follows:
Annual installment= Loan amount/annuity factor .
The annual installment is already given as 37,258.
Principal payable = Annual installment - interest amount
Interest amount = Interest rate × loan amount
= 8%× 250,000 =20,000
Principal payable in year 1 =37,258 - 20,000 =$17,258
Principal payable in year 1 = $17,258
