On July $1,20$x$1,$ borrowed $$50,000$ from a local bank and signed two notes. The Note #$1$ for

$$10,000$ requires payment of principal and $8\%$ interest on December $31,20$x$1.$ Note #$2$ for

$$40,000$ requires the payment of principal in two years. Interest at $10\%$ is payable each year on

June $30,20$x$2,$ and June $30,20$x$3.$