Walter is interested in buying a boat, but he does not currently have enough money to pay for it. He takes out a $40,000 personal loan from Wells Fargo to purchase the boat today. The loan requires him to repay the $40,000 with fixed monthly payments over the next 7 years. Assume Wells Fargo charges Walter 12% interest, compounded monthly.

What is the remaining loan balance at the end of the first month?

What is the remaining loan balance at the end of the second month?