QUESTION 3 Caleb is considering the purchase of 150 acres of land in West Texas for $3,500 per acre. A bank will loan him $2,500 per acre of land and the loan will be fully amortized over 10 years at 8%. The outstanding balance of the loan will be paid at the end of the 5th year. Assume that the marginal tax rate is 10% and the inflation rate is 3%. (Answer the following questions on a per acre basis) Calculate the loan payment. a. $372 c. $200 Enter Response Here: b. $172 d. None of the answers are correct ) Calculate the interest paid in the first year. a. $186 b. $172 c. $200 d. None of the answers are correct Enter Response Here: (1) Calculate the tax savings from interest payments in the second year, a. $20 b. $18 c. $17 d. None of the answers are correct Enter Response Here: (iv) Calculate the loan balance at the end of the second year. a. $2,327 b. $2,500 c. $2,141 d. None of the answers are correct Enter Response Here