In: Finance
A farmer is considering borrowing money from a bank. Given the following information: Initial loan amount is $52,000. The loan will be fully amortized in 3 years at 10%. Marginal tax rate is 15%. (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 are correct ENTER RESPONSE HERE: (ii) What is the principal payment in the 2nd year? a. $14,835.71 b. $3,530.58 c. $17,280.97 d. None of the answers are correct ENTER RESPONSE HERE:
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As nothing was mentioned excel is used for calculating "PMT". If you need with formula, let me know, will do that also. Thank you.