Problem 3 Solve Each of the Following: Part 1: (2 points) (Exercise 5.24) A borrows $2100 for 12 years at an annual effective interest rate of 9%. A can repay this loan using the amortization method with payments of P at the end of each year. Instead. A repays the loan using a sinking fund that pays an annual effective rate of 13%. The deposits to the sinking fund are equal to P minus the interest on the loan and are made at the end of each year for 12 years. Determine the balance in the sinking fund immediately after repayment of the loan. ANSWER =$ Part 2: (2 points) (Exercise 5.20) A borrower is repaying a loan with 13 annual payments of $1400. Half of the loan is repaid by the amortization method at 4.5 % effective. The other half of the loan is repaid by the sinking fund method in which the lender receives 4.5% on the investment and the sinking fund accumulates at 3.5% effective. Find the amount of the loan. Answer to the nearest dollar. ANSWER =$ Part 3: (2 points) (Exercise 5.25) An investor buys an annuity with payments of principal and interest of $400 per quarter for 14 years. Interest is at the effective rate of 8% per annum. How much interest does the investor receive in total over the 14- year period? ANSWER =$ Problem 3 Solve Each of the Following: Part 1: (2 points) (Exercise 5.24) A borrows $2100 for 12 years at an annual effective interest rate of 9%. A can repay this loan using the amortization method with payments of P at the end of each year. Instead. A repays the loan using a sinking fund that pays an annual effective rate of 13%. The deposits to the sinking fund are equal to P minus the interest on the loan and are made at the end of each year for 12 years. Determine the balance in the sinking fund immediately after repayment of the loan. ANSWER =$ Part 2: (2 points) (Exercise 5.20) A borrower is repaying a loan with 13 annual payments of $1400. Half of the loan is repaid by the amortization method at 4.5 % effective. The other half of the loan is repaid by the sinking fund method in which the lender receives 4.5% on the investment and the sinking fund accumulates at 3.5% effective. Find the amount of the loan. Answer to the nearest dollar. ANSWER =$ Part 3: (2 points) (Exercise 5.25) An investor buys an annuity with payments of principal and interest of $400 per quarter for 14 years. Interest is at the effective rate of 8% per annum. How much interest does the investor receive in total over the 14- year period? ANSWER =$