You have calculated that in order topay for your college education you will need borrow $44,000 in student loans. You take out a Stafford Loan that has an interest rate of 2.75% (i = 0.0275). Assume that the payments on the loan are made yearly and are fixed. Upon graduation, Stafford loan gives you two repayment plans. You can make fixed annual payments over 15 years or you can make fixed annual payments over 30 years.

(a) What will be the annual fixed payments if you choose to pay off the loan in 15 years?Use the fixed-payment equation: [5 Points]

(b) What will be the annual fixed payments if you choose to pay off the loan in 30 years? [5 Points]

(c) How much total interest will you pay under the 15 yearplan? How much total interest will you pay under the 30 year plan? [5 Points]