2. Agus borrows $10,000 for 10 years at an annual effective rate of 10%. He can repay this loan

using the non-level amortization with the first payments of P at the beginning of each year, and the next

payments are increased by 3% each year. Instead, Agus repays the loan using sinking fund method that

pays an annual effective rate of 14%. The deposits to the sinking fund are equal to the amortization

payment minus the interest on the original loan at each period, and are made at the beginning of each

year for 10 years. Note that interest on the original loan is paid at the end of each year. Determine the

remaining balance in the sinking fund account immediately after the repayment of original loan. SHOW

YOUR WORK