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A farmer is considering borrowing money from a bank. Given the following information: - Initial loan amount is $95,000. - The loan will be fully

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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 1st year? a. $73,934.68 b. $73,885.14 C. $66,846.85 d. None of the answers are correct ENTER RESPONSE HERE: (ii) What is the loan balance at the end of 2nd year? a. $48,646.40 b. $35,315.32 c. $50,236.49 d. None of the answers are correct ENTER RESPONSE HERE

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