ns + Question 34 of 50 DO You plan to borrow $47.400 at a 7.8% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? a 53,280.30 b. 53.331.33 c59,042.05 d. 53,697.20 58,387.80 oooo Question 35 of 50 Last year Ann Arbor Corp had $220,000 of assets (which equals total invested capital), $305,000 of sales, $22,000 of net income, and a debt-to-total-capital ratio of 37.5%. The new CFO believes that a new computer program will enable the company to reduce costs and thus raise net income to $37.000. The firm finances using only debt and common equity. Assets, total invested capital, sales, and the debt-to-capital ratio would not be affected. By how much would the cost reduction improve the ROE? Do not round your intermediate calculations. a. 10.91 pp b. 6.82 pp. 1455pp d. 18.18 pp e. 16.00 PD