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Use the following to answer questions 25 – 27 On January 1, year 1, ST borrows...

Use the following to answer questions 25 – 27

On January 1, year 1, ST borrows $32,000 to purchase a new vehicle by agreeing to a 3.75%, 5-year note with the bank. Payments of $585.73 are due at the end of each month with the first installment due on January 31, year 1. ROUND YOUR ANSWERS TO THE NEAREST CENT (2 decimal places).

25. After the first car payment (installment) is made the amount owed on the vehicle would be: $_________.___

26. Determine interest expense for the second car payment $_______.___

27. After the Company pays all of the car payments, how much do they owe at the end of the 5 years? $______

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