Problems 22-24 are based on the following statement A $25,000 bank loan is to be repaid in equal yearly payments over 15 years at an effective annual interest rate of 7% 22. What is most nearly the yearly payment? a $1667 b. $1783 C. $2745 d. $3417 23. Approximately what percentage of the first payment is applied to the principal? a. 096 b, 3696 c. 39% d. 51% 24. Assume the borrower can earn an annual effective return of 10% in the stock market and uses the loan money to do so. All money earned is kept in the stock fund. What is most nearly the present-day value of the earnings over 15 years as a result of this loan and investment venture? a. $750 b. $4121 C. $8487 d. $9325 25. An investment tax credit is available on an asset that has an unadjusted basis of 500,000. The ITC is worth 10%. The cost basis is reduced by 5%. The asset is to be depreciated using MACRS 5-year rates. What is ownership? the DWO in the third year of a. $57,600 b. $77,500 c. $91,200 d. $96,000 KEEP CALM