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Mr . Smith bought 3 2 5 acres of land at $ 3 , 9 6 8 per acre. He paid 2 0 percent down
Mr Smith bought acres of land at $ per acre. He paid percent down and obtained a loan for the remainder of the cost at percent over years. He was to pay off the principal in equal annual payments. The annual interest was to be paid semiannually. He planted acres in corn that cost him $ per bushel to produce. He had a good year with a yield of bushels per acre. He was able to sell his corn for $ per bushel. He planted acres in soybeans.
a What was the amount of the firstyear payment?
b What was the profit from the corn?
c How much more is needed to make the annual payment after the pro Go fit from the corn is paid on the loan?
d Is it possible to make enough on the soybeans to pay the balance on the loan? Explain.
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