Use the following information to answer questions 18 and 19. On January 1, 2015, Red Company borrowed $72,000, by issuing a 5- year, 8% installment note. The principa and interest will be paid by making annual payments ofS1 33. Payments are to be made December 31 each year, beginning in 201S 18. What is the amount of interest that will be applied to the first payment on December 31, 2015? a. S5,760 b. $4,778 c. $3,718 d. $1,443 19. What is the principal balance after the payment is made on December 31, 2018? a. SO b. $16,696 c. $18,033 d. S32,157