Question #2 James found an incredible deal on a beautiful sailboat, however it was a lot more than he anticipated spending. The boat was $150,000, and he had total savings of $88,000, implying he would need to secure a loan for the $62,000 balance. James had recently started a new job and things were going quite well, and he was expecting an annual bonus of between $10,000 - $12,000 at the end of the year. He was optimistic that he could maintain this bonus level for the foreseeable future. James' bank manager looked over his credit history and income information and suggested the best loan he could extend James for $62,000 would be a 10-year loan at 12% with annual repayments. James took this information home to crunch some number and decide if he could manage these terms. a) Calculate the yearly payments James would have to make over the 10 years. Will James' expected bonus be sufficient to cover the annual loan payments? (Round to the nearest dollar) b) How much of his first loan payment would be applied to interest and principal? (use template below) c) How much of his second loan payment would be applied to interest and principal? (use template below) d) At the end of his second year, how much would have been paid in interest, and how much of the loan would be outstanding? e) Calculate how much interest James would be paying in total over the 10-year loan