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(1 point) Buck borrows $195000 for 16 years at a rate of 7.9% compounded monthly. He has the option of paying off the loan using
(1 point) Buck borrows $195000 for 16 years at a rate of 7.9% compounded monthly. He has the option of paying off the loan using either: Option (A): The amortization method by making monthly payments towards both principal and interest or Option (B): The sinking fund method by paying only the interest monthly and a lump sum payment for the loan amount at the end of the term of the loan. If this method is used, monthly deposits are made into a separate fund at 5.3% compounded monthly in order to pay off the lump sum. How much money is saved monthly by choosing the better of Option (A) or (B)? Answer: $
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