E$10\mathrm{.}7($LO $2)($Analyze instalment payment schedule.$)$ The following instalment payment

schedule is for a long$-$term bank loan payable:

Instructions

a$.$ Assuming payments are made annually, what is the interest rate on the bank loan?

b$.$ Prepare the journal entry to record the first instalment payment.

c$.$ What are the current and non$-$current portions of the bank loan after the payment at

the end of period $2?$