Computing Installment Payment on Note Payable

On January 1, a borrower signed a long-term note, face amount $65,000, with time to maturity of 6 years. The interest rate is 7%, and equal annual installment payments will pay off the loan after six years.

a. How much is each annual installment payment? b. Record the first installment payment on December 31.

Note: Round your answer to the nearest whole dollar. Note: Do not use negative signs with your answers.

\begin{tabular}{|l|} \hline a. Annual installment payment \\ \hline$ \end{tabular} \begin{tabular}{l} a. Annual installment payment \\ \hline$ \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Date } & Account Name & Dr. & Cr. \\ \hline b. Dec. 31 & & & \\ \hline & & & \\ \hline & & & \\ \hline & To record the first installment payment. & & \\ \hline \end{tabular} \begin{tabular}{|l|} \hline a. Annual installment payment \\ \hline$ \end{tabular} \begin{tabular}{l} a. Annual installment payment \\ \hline$ \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Date } & Account Name & Dr. & Cr. \\ \hline b. Dec. 31 & & & \\ \hline & & & \\ \hline & & & \\ \hline & To record the first installment payment. & & \\ \hline \end{tabular}