Question 2 Full explain this question and text typing work only thanks A farmer is considering borrowing money from a bank. Given the followinginformation:Initial loan amount is $95,000.• The loan will be fully amortized in 3 years at 12%.• Marginal tax rate is 25%.(i) What is the principal payment in the 1st year?b. $8,550.00d. None of the answers are correcta. $21,114.86c. $28,153.15ENTER RESPONSE HERE:(ii) What is the principal payment in the 2nd year?a.$13,054.50b. $31,531.53c. $23,648.65d. $25,288.29ENTER RESPONSE HERE:

Loan amortization is borrowing a loan from an institution and repaying it in equal installments…

Answered: A farmer is considering borrowing money…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 28P

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Dexter Construction Corporation is building a student condominium complex; it started construction on January 1, Year 1. Dexter borrowed 2.5 million on January 1 specifically for the project by issuing a 10%, 5-vear, 2.5 million note, which is payable on December 31 of Year 3. Dexter also had a 12%, 5-year, 3 million note payable and a 10%, 10-year, 1.8 million note payable outstanding all year. Calculate the weighted average interest rate on the non-construction-specific debt for Year 1. RE10-9 Refer to RE10-8. In Year 1, Dexter incurred costs as follows: Calculate Dexters weighted average accumulated expenditures.
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