4. You are offered two options for repaying a loan of $100,000 over the term of 20 years: (a) You make 20 interest payments at the annual effective rate 12 %, and then repay the principal by a lump-sum payment at the end of the term. The lump sum is to be accumulated by means of 20 deposits into a sinking fund, earning 25% annually. Sinking fund deposits are made at the end of each year. (b) You repay the loan by 20 equal payments at the end of each year, with the effective annual rate of interest 11%. Which option is better?