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Afnan has an interest only loan for $130,000.00 maturing in 14 years. The interest rate on the loan is 9.250% compounded annually. She will repay
Afnan has an interest only loan for $130,000.00 maturing in 14 years. The interest rate on the loan is 9.250% compounded annually. She will repay the loan by making semi-annual interest only payments, and by also making semi-annual deposits of $2,569.56 into a sinking fund paying r(365) = 8.000%. If she defaults just after making 17 loan payments, and the lender gets the balance in the sinking fund, how much money does the lender lose? O a $66,623.74. O b. $68,684.27. O c. $57,007.94. O d. $70,744.80 O e $63,189.53
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