Jamie and Eddie are buying an apartment for $320,000. Their loan officer tells them that their principal will decrease by 4.5% every year if they make the minimum mortgage payments. Complete the table to predict the principal for the first 3 years. (Round to the nearest hundredth, if applicable.)(2 points)

Question

Year Principal
0 $320,000.00
1 $
2 $
3 $
Remaining Attempts : 3
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Answer 1

To find the principal for each year, we can calculate the principal by decreasing the previous year's principal by 4.5%.

Starting with the initial principal in year 0:

• Year 0: $320,000.00

Calculations:

1. Year 1: \[ \text{Year 1 Principal} = \text{Year 0 Principal} \times (1 - 0.045) \] \[ \text{Year 1 Principal} = 320,000 \times (1 - 0.045) = 320,000 \times 0.955 = 305,600.00 \]

2. Year 2: \[ \text{Year 2 Principal} = \text{Year 1 Principal} \times (1 - 0.045) \] \[ \text{Year 2 Principal} = 305,600 \times 0.955 = 291,616.00 \]

3. Year 3: \[ \text{Year 3 Principal} = \text{Year 2 Principal} \times (1 - 0.045) \] \[ \text{Year 3 Principal} = 291,616 \times 0.955 = 278,085.28 \]

Completed Table:

| Year | Principal | |------|------------------| | 0 | $320,000.00 | | 1 | $305,600.00 | | 2 | $291,616.00 | | 3 | $278,085.28 |

So the principal amounts for years 1, 2, and 3 are:

• Year 1: $305,600.00
• Year 2: $291,616.00
• Year 3: $278,085.28