Bill decides to purchase a new car with a sticker price of $25,000. The car dealer offers Bill either

$2,000 cash back or 2% financing for 5 years. If Bill takes the financing, he will make 60 equal monthlypayments. Otherwise, he will pay $23,000 today for the car.

Determine the interest and principal for each payment if Bill agrees to the sticker price of

$25,000 and finances the car at 2% per year.