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Sam has an interest only loan for $85,000.00 maturing in 11 years. The interest rate on the loan is 4.250% compounded annually. She will repay

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Sam has an interest only loan for $85,000.00 maturing in 11 years. The interest rate on the loan is 4.250% compounded annually. She will repay the loan by making annual interest only payments, and by also making annual deposits of $4,493.36 into a sinking fund paying r(4) = 10.000%. If she defaults just after making 10 loan payments, and the lender gets the balance in the sinking fund, how much money is the lender's net loss? O a. $11,823.66. O b. $10,496.51. O c. $9,531.32. O d. $12,064.96. O e. $10,737.81. Certainty : Oc=1 (Unsure: 67%) OC=3 (Quite sure: >80%)

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