Serial Installments; Amounts Applicable to Interest and Principal Ronald McDuffie purchases a new car at a cost of $14,400. He pays $3,000 down and issues an installment note payable by which he promises to pay the balance in 18 equal monthly installments, which include interest at an annual rate of 18% on the remaining unpaid balance at the beginning of each month starting with the first month after the purchase. Required: 1. Compute the equal installment payments. (Click here to access the PV and FV tables to use with this problem.) Round your answer to two decimal places. $ 2. Compute the interest that will be paid for each of the first two periods. Indicate the amount of each payment that will be a reduction of principal. Round your answers to two decimal places. Period 1: Interest Reduction of principal $ $ Period 2: Remaining principal balance $ Interest $ Reduction of principal $