Question: Which plan is cheaper and by how much per annum? A company can borrow $180 000 for 15 years. They can amortize thedebtatj1=10%,ortheycanpayinterestontheloanatj1=9%andsetup a sinking

Which plan is cheaper and by how much per annum?

A company can borrow $180 000 for 15 years. They can amortize thedebtatj1=10%,ortheycanpayinterestontheloanatj1=9%andsetup a sinking fund atj1= 7% to repay the loan.

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