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 August when the crop is sold. Calculate the total amount of interest paid, assuming a 6% annual interest rate. Assume interest accrues on only the outstanding balance (ie interest does not compound) March 1 $35.000 April 1 $17.000 May 1 $8,000 June 1 $25,000 O a 55,100 Ob $1,585 O $1,900 Od $425 QUESTIONS Assume a farmer takes out a five year loan for $50,000. The annual interest rate is 4% and the farmer will make equal total anual payments for years one through five with a 25% balloon payment at the end of year five. What is the approximate total amount that will be repaid over the life of the loan? Round all numbers to the nearest whole dollar O a 556.160 Ob $50,000 O C 557,120 Od $53.000