Dan Dayle started a business by issuing a $$93,000$ face$-$value note to First State Bank on January $1,$ Year $1.$ The note had a $6$ percent annual rate of interest and a five$-$year term. Payments of $$22,078$ are to be made each December $31$ for five years.

Required

a$.$ What portion of the December $31,$ Year $1,$ payment is applied to interest expense and principal?

b$.$ What is the principal balance on January $1,$ Year $2?$

c$.$ What portion of the December $31,$ Year $2,$ payment is applied to interest expense and principal?

Complete this question by entering your answers in the tabs below.

What portion of the December $31,$ Year $1,$ payment is applied to interest expense and principal? $($Round intermediate calculations to nearest whole dollar amount. Round your answers to the nearest dollar amount.$)$

Interest expense

Principal