On July 1, 2006, Maxines Equipment Company signed a long-term note with the local bank for $50,000.

Question:

On July 1, 2006, Maxine’s Equipment Company signed a long-term note with the local bank for $50,000. The term of the note was 10 years, at an annual interest rate of 8%. If Maxine’s makes annual payments of $7,451.47, beginning on June 30, 2007, how much of the first payment will be interest?