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W.T. Anderson, his aunt, and his friend Frank wanted to expand their business by borrowing $99,000 with the issuonce of a note payable to First

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W.T. Anderson, his aunt, and his friend Frank wanted to expand their business by borrowing $99,000 with the issuonce of a note payable to First State Bank on January 1, Year 1. The note had an 6 percent annual rate of interest and a five-year term. Payments of $23,502 are to be made each December 31 for five years. Required a. What portion of the December 31, Year 1, payment is applied to interest expense and principal? b. What is the principal balance on January 1, Year 2 ? c. What portion of the December 31, Year 2, payment is applied to interest expense and principal? (Round your answers to the nearest dollar amount.)

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