3. Kris and Bruce Buckeye need to finance a tractor purchase of $90,000. Their lender requires a 25% downpayment. Assume seven annual payments. The interest rate is 6.5%.

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.

b. What is the total interest paid over the life of the loan with each method?

c. What is the total interest paid for each method if the life of the loan is increased to 10 years?