Stage 2: Choose a Sinking Fund Using the future value established in #3, compare the following sinking fund options. Option A: The payment for a sinking fund at 2.7% interest compounded monthly for five years. Option B: The payment for a sinking fund at 3.0% interest compounded semiannually for five years. Option |Payment Amount Total Investment | Interest Earned 4 Show formula and answer Total Number of Payments mufed brud gin Jusino gmos 5 YEA ofimligo Based on the total amount invested and the interest earned, which of the two options would you recommend that Coco's Closet move forward with? Explain your reasoning. Stage 3: Amortize an Annuity to Pay Loan Once Coco's Closet has the future value established in #3, they would like to drop that money into an ordinary annuity that pays out the money over the same time period and payment plan as any loan that they are required to take out to complete the expansion. The payment of an annuity to a bank or another entity ( even oneself ) is an amortization of the funds. TON 7. The amount in the sinking fund is placed in an annuity that is amortized at 4.5% monthly over a fixed period of 10 years. a. What will the monthly amortized payments be over the next 10 years? b. How much will Coco's Closet earn in total? c. What is the interest that Coco's Closet earns from the annuity? d. Combined with the interest earned in the sinking fund, what is the total amount of interest earned? 2