Business, 16.07.2019 17:10 wereallmadhere111

John is considering the purchase of 100 acres of land in east texas for $2,500 per acre. a bank will loan him $2,000 per acre of land and the loan will be fully amortized over 12 years at 6%. the outstanding balance of the loan will be paid at the end of the 5th year. assume that the marginal tax rate is 12% and the inflation rate is 4%. (answer the following questions on a per acre basis) (i) calculate the loan payment. a. $238 b. $120 c. $118 d. none of the answers are correct enter response here: (ii) calculate the interest paid in the first year. a. $112 b. $105 c. $120 d. none of the answers are correct enter response here: (iii) calculate the tax savings from interest payments in the second year. a. $14 b. $13 c. $12 d. none of the answers are correct enter response here: (iv) calculate the loan balance at the end of the first year. a. $1,755 b. $1,622 c. $1,881.45 d. none of the answers are correct

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John is considering the purchase of 100 acres of land in east texas for $2,500 per acre. a bank will...