In: Finance
A farmer is considering borrowing money from a bank. Given the following information: Initial loan amount is $250,000. The loan will be fully amortized in 3 years at 14%. Marginal tax rate is 15%. (ii) What is the interest payment in the 1st year? a. $41,176.47 b. $29,750.00 c. $40,250.00 d. $35,000.00 ENTER RESPONSE HERE: (iii) What is the interest payment in the 2nd year? a. $21,100.74 b. $29,205.17 c. $28,548.06 d. $24,824.40 ENTER RESPONSE HERE: (iii) What is the total interest payment for this loan? a. $83,605.86 b. $82,022.27 c. $73,048.61 d. None of the answers are correct ENTER RESPONSE HERE: