On January 1, 2020, Elsa purchases equipment for $40,000, paying $4,000 down and borrowing the remaining $36,000, signing a 7%, 5-year note. Installment payments of $712.84 are due at the end of each month, with the first payment due on January 31, 2020.

Round all calculations to the nearest cent.

1. How much of the first payment on January 31, 2020 is interest expense?

2. What is the balance of the Note Payable liability on Elsas March 31, 2020 balance sheet?

3. What is the total amount of interest expense Elsa will pay on this loan?