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A
XV fx
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WHO C
December 31 for five years.
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K
6 Required
7 (Use cell references from the given information above to complete this question.)
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a. What portion of the December 31, Year 1, payment is applied to interest expense and principal?
11 Interest expense
12 Principal
$6,400
$13,637
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14 b. What is the principal balance on January 1, Year 2?
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16 Principal balance
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18 c. What portion of the December 31, Year 2, payment is applied to interest expense and principal?
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20 Interest expense
21 Principal
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$80,000
8%
5 $20,037
Students: The scratchnad area is for you to do any additional work you need to solve this question or can be used to show your work