Problem 1

To help with cash flow, Scotts Camping World (SCW) borrowed $50,000 from their bank on January 1, 2023, by issuing a 5-year, 9% installment loan. Payments of $12,854 are due each year on December 31, beginning in 2023.

(2 points) Question 1 - What is the principal balance on this installment note at the end of 2025 after the loan payment is recorded? Round your answers to the nearest whole dollar. (Hint: Use an amortization schedule to determine your answer.)