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A farmer is considering borrowing money from a bank. Given the following information: Initial loan amount...

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Finance

A farmer is considering borrowing money from a bank. Given thefollowing information: Initial loan amount is $52,000. The loanwill be fully amortized in 3 years at 10%. Marginal tax rate is15%. (i) What is the principal payment in the 1st year? a.$15,709.97 b. $13,029.06 c. $13,353.47 d. None of the answers arecorrect ENTER RESPONSE HERE: (ii) What is the principal payment inthe 2nd year? a. $14,835.71 b. $3,530.58 c. $17,280.97 d. None ofthe answers are correct ENTER RESPONSE HERE:

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A farmer is considering borrowing money from a bank. Given thefollowing information: Initial loan amount is $52,000. The loanwill be fully amortized in 3 years at 10%. Marginal tax rate is15%. (i) What is the principal payment in the 1st year? a.$15,709.97 b. $13,029.06 c. $13,353.47 d. None of the answers arecorrect ENTER RESPONSE HERE: (ii) What is the principal payment inthe 2nd year? a. $14,835.71 b. $3,530.58 c. $17,280.97 d. None ofthe answers are correct ENTER RESPONSE HERE:

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