A city has two sources to borrow $200,000.The first source is to borrow at j1 = 9% and amortize the debt for 10 years with annual payments of $31,164.For the second source, the money can be borrowed at j1 = 8% if the interest is paid annually and the principal is repaid in a lump sum at the end of 10 years.Assume that a sinking fund can earn money at j1 = x%.At which of the following values of x will the second source be cheaper?

(a) 7% (b) 6% (c) 5%

A.None of them

B.7% only

C.5%, 6% and 7%

D.6% and 7%