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5) Smith can repay a loan of $250,000 one of two ways. - (i) 30 level annual payments at the end of each year at

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5) Smith can repay a loan of $250,000 one of two ways. - (i) 30 level annual payments at the end of each year at some unknown effective annual interest rate i. - (ii) 30 annual interest payments at the end of each year to the lender at an effective annual interest rate of 10%, along with 30 level deposits at the end of each year into a sinking fund earning an effective annual interest rate of 1.9%. Find the value of i to make the schemes equivalent

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