A farmer meets his short-term capital needs by establishing a line of credit and borrowing as follows. All the borrowed money plus interest is paid back on Augusti when the crop is sold. Calculate the total amount of interest paid, assuming a 3% annual interest rate. Assume interest accrues on only the outstanding balance (ie. interest does not compound). March 1 $15,000 April 1 $8,000 May 1 $3,000 July 1 S12.000 O a $1,900 b. 595 OC. $1,140 Od $320 QUESTION 18 Assume a farmer takes out a five year loan for $50,000. The annual interest rate is 4% and the farmer will make equal annual principal payments for years one through five. Approximately how much interest will be paid over the life of the loan? Round all numbers to the nearest whole dollar. O a $6,160 b $56,000 O $56,160 Od $6,000