Mr. Jones bought a building for $60,000, payable on the following terms: a $10,000 down payment and

Question:

Mr. Jones bought a building for $60,000, payable on the following terms: a $10,000 down payment and 25 equal annual installment payments to include principal and interest of 10 percent per annum. Calculate the amount of the installment payments. How much of the first year’s payment goes toward reducing the principal amount?