Question: Problem 6: Rockville is considering a five-year level payment loan of $50,000 with annual payments made on the anniversary date of the loan. The loan

Problem 6: Rockville is considering a five-year level payment loan of

Problem 6: Rockville is considering a five-year level payment loan of $50,000 with annual payments made on the anniversary date of the loan. The loan requires annual payments and the bank has quoted an interest rate of 8%, which is also the market rate. Determine the annual payment (round to the nearest whole $) and prepare the amortization table for the loan. Period BOY Interest Payment EOY 1 50,000 2 3 4 5 Total 1. Assuming that Rockville borrowed on April 1 of last year prepare the journal entry to record the first loan payment on April 1 of the current year. Assume interest expense was properly accrued on the loan last year, but no entries regarding the loan have been recorded for this year. Account title Debit Credit

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