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1. A loan of 100000 is repaid by 10 annual payments starting one year after the loan is made. Annual payments are made for interest

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1. A loan of 100000 is repaid by 10 annual payments starting one year after the loan is made. Annual payments are made for interest at 8% annual effective. Principal is repaid in a lump sum at the end of 10 years. The sinking fund earns interest at 10% annual effective. a) Find the annual payments using amortization b) Find annual payments using sinking fund method. (10pts)

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