Shen is taking out an amortized loan for $83,000 to open a small business and is deciding between the offers from two lenders.

He wants to know which one would be the better deal over the life of the small business loan, and by how much.

Answer each part. Do not round intermedlate computations, and round your answers to the nearest cent.

a) His credit union has offered him a 9-year small business loan at an annual interest rate

of 11.1%. Find the monthly payment.

b)(b) A bank has offered him a 9-year small business loan at an annual interest rate of

10.9%. Find the monthly payment.

c) Suppose Shen pays the monthly payment each month for the full term. Which lender's

small business loan would have the lowest total amount to pay off, and by how much?

Credit union:

The total amount pald would be $_ less than to the bank.

Bank:

The total amount paid would be $_ less than to the credit union.