39. A company has a $24,000 installment note with a 6% annua…
39. A company has a $24,000 installment note with a 6% annual interest rate. The first annual payment is $5,698. Use the following formulas: First-year interest = Beginning principal balance × Annual interest ratePrincipal reduction = Annual payment − First-year interest How much of the first payment reduces the note’s principal balance? 1. $1,440 2. $4,258 3. $5,698 4. $19,742 Instructions to students: Type in the number of the answer of your choice (type in either 1, 2, 3, or 4). Do not type in a decimal after inputting the number.