Buck borrows 100000 dollars for 18 years at a nominal rate of 9 percent convertible monthly....

Buck borrows 100000 dollars for 18 years at a nominal rate of 9 percent convertible monthly. He has the option of paying off the loan using either the amortization or sinking fund method. If he can invest his sinking fund deposits at 7.4 percent convertible monthly, how much will he save each month by going with the better method? (Assume monthly payments and deposits.) (Note: you'll need to decide which method is the better one.)

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jeff jeffy answered 1 year ago

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