4. Julie and John Aggie want to purchase 80 acres of farm land valued at $2,500 per acre. Their lender requires a 30% downpayment. Assume twenty annual payments. The interest rate is 5.5%.

a. Calculate the schedule of interest and principal payment 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. Calculate the interest and principal payment schedule for a 5-year balloon payment loan. Assume annual payments, 5.5% interest rate, and a twenty year amortization schedule.