On January 1, 20XX, QMX Corporation Issued a $100,000 note to SPO Corporation because SPO needed cash to acquire a new business. The terms of the of the note were 10 years at 10% Interest. Payments were made annually and are due on the first of each year.

Please answer the following questions:

1) What is the annual payment? 2) What is the balance of the note after year four? 3) What is the principal balance of the note after year seven?

Please show all work.