A Loan of $200,000 Can Be Amortized Over 10 Years

A loan of $200,000 can be amortized over 10 years at j₁ = 13% (option 1) .Alternatively,the money can be borrowed at j₁ = y%,with interest paid at the end of each year and the original loan repaid with one lump sum at the end of 10 years (option 2) .For option 2,a sinking fund can be set up earning j₁ = 9%.What is the value of y such that the annual expense under the two options is the same?

A) Less than 10.5%
B) 10.5% or more,but less than 11%
C) 11% or more,but less than 11.5%
D) 11.5% or more