A farmer is considering borrowing money from a bank. Given the following information:

Initial loan amount is $250,000.

The loan will be fully amortized in 3 years at 14%.

Marginal tax rate is 15%.

(ii) What is the interest payment in the 1^st year?

a. $41,176.47 b. $29,750.00

c. $40,250.00 d. $35,000.00

(iii) What is the interest payment in the 2^nd year?

a. $21,100.74 b. $29,205.17

c. $28,548.06 d. $24,824.40

(iii) What is the total interest payment for this loan?

a. $83,605.86 b. $82,022.27

c. $73,048.61 d. None of the answers are correct