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Q6. You are going to drill a well and install a pivot irrigation system on 2 different fields. The total cost of drilling the well

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Q6. You are going to drill a well and install a pivot irrigation system on 2 different fields. The total cost of drilling the well for both fields is $62,000 and the total cost of 2 irrigation systems is $211.000. You can afford a $35,000 down payment You visited with your local Farm Credit Agency bank, and you are approved for a loan. You have the choice between an equal principal payment loan, an equal total payment loan or a balloon payment loan (details described below). The bank offers you a 7% annual interest rate over 7 years. Payments are due once annually for any loan option you select. Complete the following tables to determine the total cost of the loan. (15 pts total) a. Complete the following table assuming an equal principal payment loan 5 pts Year Principal Paid Interest Paid Total Payment Remaining Principal 1 2 3 4 7 Total m). Complete the following table assuming an equal total payment loan. 5 pts Year Principal Paid Interest Paid Total Payment Remaining Principal 7 Total Now assume you can still afford a $55.000 down payment, but you work with your lender to balloon 35% of the payment until the final year of the loan. All the other conditions of the loan interest rate and number of years) stay the same. . Complete the following table assuminga 35% Balloon Payment Loan with equal total payments. S pts Remaining Year Principal Paid Interest Paid Total Payment Principal 2 3 Balloon Payment Total

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