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1) Rebecca borrows $40,000 at 6% interest. a) Find her annual payment if she uses amortization over 10 years and makes level payments at the
1) Rebecca borrows $40,000 at 6% interest. a) Find her annual payment if she uses amortization over 10 years and makes level payments at the end of each year. b) How much interest would Rebecca pay using this method? c) Find her annual cost if she pays the bank the interest due on the outstanding balance at the end of every year and makes annual contributions to a sinking fund earning 7.5% interest with the intention of paying off the loan at the end of 10 years. d) Rebecca decides to set her total annual cost to the loan payment amount calculated in part a). She pays the interest each year and invests the balance in her sinking fund. How much does she have left in the sinking fund once she pays off the loan
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