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A ten-year loan of 10000 at 8% annual effective interest can be repaid using any of the four following methods: 5, Amortization method, with annual

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A ten-year loan of 10000 at 8% annual effective interest can be repaid using any of the four following methods: 5, Amortization method, with annual payments at the end of each year. Paying the 8% annual effective interest on the loan at the end of each year. In addition, make equal size annual deposits at the end of each year into a sinking fund earning 6% annual effective interest, so that the sinking fund accumulates to 10000 at the end of the 10th year. Same as II, except the sinking fund earns 8% annual effective interest. Same as 11, except the sinking fund earns 12% annual effective interest. Ill. IV. Rank the total annual payment amounts (i.e. annual outlays) for each method. (a) I

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