Ch 7 HW Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not 2 e note to First State Bank on January 1, 2018. The note had an 8 percent annual rate of interest and a five-year term. Payments of $20,037 are to be made each December 31 for five years. Required 2.5 points a. What portion of the December 31, 2018, payment is applied to interest expense and principal? b. What is the principal balance on January 1, 2019? c What portion of the December 31, 2019, payment is applied to interest expense and principal? (Round your answers to the nearest Prindipal 14,725 Prex 2 of 4 Next acBook Pro