Final answer:
We need to calculate the principal amortized with the first annual payment of a $50,000 loan at 10% interest. The interest for the first year is $5,000. Without the exact annual payment amount, we cannot determine the exact principal paid, but it is less than the annual payment minus $5,000 of interest.
Step-by-step explanation:
The student's question is about calculating amortization on a $50,000 loan that is to be repaid in three equal annual payments with 10% interest. Given that the interest rate is 10%, the amount of interest to be paid in the first year on the entire principal amount is $50,000 x 10% = $5,000. However, since the payments are equal each year, we cannot simply subtract the interest from the payment to find the principal repaid because each payment includes both interest and principal repayment, calculated using an amortizing formula.
To find the exact principal amount amortized with the first payment, we would typically use an amortization formula or a financial calculator. Unfortunately, there is not enough information provided to solve for the specific amortization amount, as we would need to know the exact amount of the annual payment to determine how much of that payment is going towards principal repayment. However, we can infer that the amount of principal that is paid off with the first payment would be less than the total annual payment minus $5,000 of interest.