If the interest on the sinking fund in question 33.9 were at 10 per cent, how much would the annual payments into it be? ;

Question 33.9

A condition of a ten-year loan of £20,000 is that the borrower will pay equal annual amounts into a sinking fund so that it accumulates at the end of the ten years to the amount of the loan. The sinking fund will earn interest at 8 per cent per annum. How much should be paid into the sinking fund each year?