2. A car loan of $32,000 has to be amortized in 10 level annual payments. The interest rate is 2.5% (a) construct full amortization schedule for the loan (use either the prospective or retrospective method) (b) assume a sinking fund method is used to amortize the loan with the sinking fund annual interest rate of 6%. Construct a full amortization schedule. C) what is the amount of interest saved when the sinking fund is used to amortize the loan: ANS: e.g. loan installment is $3656.28, SF deposit is $2,427.22, (c) $277.75 2. A car loan of $32,000 has to be amortized in 10 level annual payments. The interest rate is 2.5% (a) construct full amortization schedule for the loan (use either the prospective or retrospective method) (b) assume a sinking fund method is used to amortize the loan with the sinking fund annual interest rate of 6%. Construct a full amortization schedule. C) what is the amount of interest saved when the sinking fund is used to amortize the loan: ANS: e.g. loan installment is $3656.28, SF deposit is $2,427.22, (c) $277.75