To calculate the principal for the following years, we start with the principal at Year 0 and apply the 4.5% decrease each year.
Year 1: Principal at Year 0: $320,000.00 Decrease: \[ 320,000 \times 0.045 = 14,400 \] Principal at Year 1: \[ 320,000 - 14,400 = 305,600.00 \]
Year 2: Principal at Year 1: $305,600.00 Decrease: \[ 305,600 \times 0.045 = 13,752 \] Principal at Year 2: \[ 305,600 - 13,752 = 291,848.00 \]
Year 3: Principal at Year 2: $291,848.00 Decrease: \[ 291,848 \times 0.045 = 13,136.16 \] Principal at Year 3: \[ 291,848 - 13,136.16 = 278,711.84 \]
Now we can fill in the table:
| Year | Principal | |------|------------------| | 0 | $320,000.00 | | 1 | $305,600.00 | | 2 | $291,848.00 | | 3 | $278,711.84 |
So the completed table is:
| Year | Principal | |------|------------------| | 0 | $320,000.00 | | 1 | $305,600.00 | | 2 | $291,848.00 | | 3 | $278,711.84 |