A customer has taken out a fully amortized loan for $150,000 at a 8% interest rate over 15 years. The marginal tax rate is 33%.

What is the yearly payment?

a.$10,572.82

b.$18,439.88

c.$17,524.43

d.$8,496.73

What is the interest payment in year 2?

a.$10,565.24

b.$11,080.73

c.$11,558.05

d.$12,000

What are the tax savings from interest in year 1?

a.$3,960.00

b.$3,814.16

c.$1,260.00

d.$2,835.00