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. A loan of $100 000 at 8% per annum is to be repaid over 10 years; $20 000 by the amortization method and $80

. A loan of $100 000 at 8% per annum is to be repaid over 10 years; $20 000 by the amortization method and $80 000 by the sinking-fund method, where the sinking fund can be accumulated with annual deposits at j4 = 5%. What extra annual payment does the above arrangement require as compared to repayment of the whole loan by the amortization method?

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