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

Initial loan amount is $$95,000.$

The loan will be fully amortized in $3$ years at $12\%.$

Marginal tax rate is $25\%.$

$($i$)$ What is the loan balance at the end of $1$st year?

a$.$ $$73,934\mathrm{.}68$ b$.$ $$73,885\mathrm{.}14$

c$.$ $$66,846\mathrm{.}85$ d$.$ None of the answers are correct

ENTER RESPONSE HERE:

$($ii$)$ What is the loan balance at the end of $2$nd year?

a$.$ $$48,646\mathrm{.}40$ b$.$ $$35,315\mathrm{.}32$

c$.$ $$50,236\mathrm{.}49$ d$.$ None of the answers are correct

ENTER RESPONSE HERE: