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On January 1, 2016, Demarest Company purchased equipment and signed a six-year mortgage note for$160,000 at...

On January 1, 2016, Demarest Company purchased equipment and signed a six-year mortgage note for$160,000 at 15%. The note will be paid in equal annual installments of $42,278, beginning January 1, 2017. Calculate the portion of principal amount paid on the third installment. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

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Year Interest Charged @15% on (D) Annual Installment Reducing Balance Principal Portion of Annual Installment
(A) (B) (C) (D) (E) = (C) - (B)
0 160000
1 24000 42278 141722 18278
2 21258.3 42278 120702.3 21019.7
3 18105.35 42278 96529.65 24172.65
4 14479.45 42278 68731.1 27798.55
5 10309.67 42278 36762.77 31968.33
6 5515.23 42278 0 36762.77
Principal Amount in Year 3 Annual Installment is $24,172.65
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