Kris and Bruce Buckeye need to finance a tractor purchase of $$70,000.$ Their lender requires a

$25\%$ downpayment. Assume seven annual payments. The interest rate is $7\%.$

a$.$ Calculate the schedule of interest and principal payments over the life of the loan using the

constant payment method

a$.$ What is the total interest paid over the life of the loan with each method?

Year Loan Balance Payment Interest Principal End of Year

Balance

$1$

$2$

$3$

$4$

$5$

$6$

$7$

b$.$ Total Interest Paid