Roberts Inc. has the following loans at the end of Year3: $200,000 note payable to First National Bank (FNB). The bank requires monthly payments of interest of $1,000 at the end of each month. (No principle is paid in the monthly payments. Those are interest only.) Roberts has made all of these payments (the last payment was made on 12/31/Year3, for December). This is a 3-Year note that was borrowed on May 31, Year1. The $200,000 of principle is all due on June 1, Year4. $500,000 note payable to Second National Bank (SNB). This is a 5-Year note borrowed on July 1, Year3. Interest at 6% per year is due annually on June 30. The principle of $500,000 is all due on June 30, Year8.