A loan of $68,500 is due 10 years from today. The borrower wants to make annual payments at the end of each year into a sinking fund that will earn compound interest at an annual rate of 10 percent.

a. What will the annual payments have to be?

b. Suppose the investor makes the payments monthly instead. How much would they need to pay each month?

c. If payment was made by making monthly payments with monthly compounding then how less they will pay in a year?