Y Nicole borrows $221000 for 10 years at a nominal rate of 6.1% convertible montly. She has the option of paying off the loan using ether amortuation or the sinking fund mothod. (a) If she chooses to...

Extracted text: Y Nicole borrows $221000 for 10 years at a nominal rate of 6.1% convertible montly. She has the option of paying off the loan using ether amortuation or the sinking fund mothod. (a) If she chooses to amortize the loan with level monthly payments of 80, what is the amount of oach of her monthly paymerts? Q =s (b) If the sinking fund has an interest rate of 6.3% convertible monthly, what is the amount of her monthly outlay if she chooses this method? (Assume morithy payments and deposits.) Outlay S (c) How much will she save each month by going with the better method? dollars. Answer