A customer has taken out a fully amortized loan for $56,000 at a 7.5% interest rate over 7 years. The marginal tax rate is 30%.

What is the yearly payment?

a.$10,572.82

b.$10,143.93

c.$9,458.92

d.$8,496.73

What is the interest payment in year 2?

a.$2,835.00

b.$2,438.68

c.$3,208.23

d.$3,722.04

What are the tax savings from interest in year 1?

a.$11,116.61

b.$793.80

c.$1,260.00

d.$2,835.00