Problems 27 through 31 are given: A loan L = $10,000 is taken out on 3/1/1995, at an effective rate of interest i=8% per year. Interest is paid annually, and a sinking fund is established to repay the principal L on 3/1/2002. Payments X are made annually into the fund beginning on 3/1/1996 and the fund earns interest at 9% per year. Find iL iL iL iL iL i=8% 3/1/95 3/1/96 3/1/97 3/1/98 3/1/99 0 1 2 3 4 L-10,000 Loan 3/1/02 7 years X X X X X j=9% (SINKING FUND) * HERE 3/1/95 3/1/96 3/1/97 3/1/98 3/1/99 3/1/02 1 2 3 4 7 years, L = XS - 27. The amount of each Annual Payment made to the Sinking Fund X= __; a) $1086.91 b) $1886.90 c) $800 d) $900 28. Total Annual Outlay, T=_approximately: a) $2687 b) $1921 C) $1887 d) $1787 29. Total Extra Payments than the original Loan L will be paid in Sinking Fund way= a) (IL) b) (Xn-L) c) (iL)n d) L(1+1)" -L 30. The approximate each Annual Payment, K if the repay Loan L =$10,000 = Ka, is in Amortization at i = 8% effective rate of interest per year; a) $1021 b) $1087 c) $1887 d) $1921 31. Total Extra Payments than the original Loan L will be paid in the Amortization, (Kn-L) - a) $3445 b) $3842 c) $3774 d) $3258