The Righton Corporation is taking out a loan of $38,000 at 7.8% interest (see table below). This interest rate is locked in for the life of the loan. They recognize that if/when they want to take out another loan in the future, the interest rate may change, but they have no reason to expect it to be higher or lower, and they are confident that the bank would extend them another loan on similar terms. They are considering three different possible repayment plans for the current loan. Under Plan 1, they must pay yearly interest of $2,964 and the entire principal at the end. Plan 2 is an annuity-type plan where they pay equal payments of $5612.14 every year. With Plan 3, they pay a balloon payment of principal plus all accumulated interest in year 10. Year Plan 1 Plan 2 Plan 3 0 $38,000 $38,000 $38,000 1 - $2,964 - $5612.14 0 2 - $2,964 - $5612.14 0 3 - $2,964 - $5612.14 0 4 - $2,964 - $5612.14 0 5 - $2,964 - $5612.14 0 6 - $2,964 - $5612.14 0 7 - $2,964 - $5612.14 0 8 - $2,964 - $5612.14 0 9 - $2,964 - $5612.14