For each of the following loan options (a & b) compute the following values:
- annual loan payment
- proportion of principle and interest in the first annual payment
- total interest paid over the entire time line of the loan
-total principal paid over the entire time line of the loan
a. You have decided to purchase a capital asset using an 850,000 at a rate of 8% for 25 years.
b. You have decided to purchase a capital asset for 850,000 at a rate of 7% for 15 years.
c. Which option would you take and why? Explain.