1. Elise and Joe Farmalat borrow $175,000 on March 15. Joe and Elise expect to repay $100,000 on October 15 and the remaining balance on November 15. Calculate the total interest obligation if the interest rate is 8% and interest is charged on the daily outstanding principal balance. 2. Sam and Ellen Rancher borrow $125,000 on January 15 and $175,000 on April 1 to purchase cattle. Sam and Ellen repay in three equal payments of $100,000 on March 1, June 1 and November 1. Calculate the total interest obligation if the interest rate is 7%, and interest is charged on the daily outstanding balance. 3. Kris and Bruce Buckeye need to finance a tractor purchase of $70,000. Their lender requires a 25% down payment. Assume seven annual payments. The interest rate is 7%. a. Calculate the schedule of interest and principal payments over the life of the loan using the constant payment method and the constant payment on principal method. a. Constant Payment Method Year Loan Balance Payment Interest Principal End of Year Balance $46,433.46 $52,500.00 2 3 6 0.00 Total Interest Paid b. What is the total interest paid over the life of the loan with each method? Constant Payment on Principal Method Payment Interest Loan Balance Principal End of Year Balance $52,500.00 7,500.00 0.00 Total Interest Paid $14,700.00