Jay Mills started a business by issuing a $95,000 face value note to State National Bank on January 1, 2014. The note had a 6 percent annual rate of interest and a five-year term. Payments of $22,553 are to be made each December 31 for five years.
Required
a. What portion of the December 31, 2014, payment is applied to
Interest expense:
Principal:
B. What is the principal balance on January 1, 2015?
What portion of the December 31, 2015, payment is applied to (Round intermediate calculations and your final answers to nearest whole dollar amount.)
Interest expense:
Principal: