Nicole borrows $221000 for 10 years at a nominal rate of 5.1% convertible monthty She has the option of paying off he loan uing ether amortation or the sng tund method (a) If she chooses to amortize the loan with level monthly payments of S0, what is the amount of each of her monthly paymerts? Q =s (b) If the sinking fund has an interest rate of 6.3% convertibile monthly, what is the amount of her monthly outlay if she chooses this method? (Assume morthy payments and deposits.) Outlay $ (c) How much will she save each month by going with the better method? dollars Answer

Q: What would the monthly payment be? It is a zero amortizing loan

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