Problem 1

To help with cash flow, Scotts Camping World (SCW) borrowed $60,000 from their bank on January 1, 2023, by issuing a 6-year, 8% installment loan. Payments of $12,979 are due each year on December 31, beginning in 2023.

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.)