Jenny takes out a 10-year loan of 100,000 at an annual effective rate of 8%. At the end of each year Jenny makes interest payments to the lender and sinking fund deposits into a sinking fund earning 6% annual effective. Jenny's first sinking fund deposit is $1000 and the remaining deposits are level. a) Find the total (net) interest paid on the loan. b) How would the total (net) interest paid on the loan change if the interest rate on the sinking fund increased? (Do not calculate just describe the impact):

No excel solution please