Exereise $7\mathrm{.}9$A $($Algo$)$ Financial statement effects of an installment note LO $7\mathrm{.}5$

Dan Dayle staned a business by iswuing an $589000$ foce value note to First State Bank on lancary $t,$ Year $1.$ The note had a $6$ pecent arnual rate of interest and a fiveytar term. Payments of $$27,28$ are to be made each December $31$ loe five years.

Required:

b$.$ What is re princlpal balance on January t vear $2?$