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A 10-year loan of 1000 is to be repaid with payments at the end of each year. It can be repaid under the two options:
A 10-year loan of 1000 is to be repaid with payments at the end of each year. It can be repaid under the two options: (a) Equal annual payments at an effective annual rate of 6.09%. (b) Installments of 100 each year plus interest on the unpaid balance at an effective annual rate of i. The sum of the payments under option (a) equals the sum of the payments under option (b). Determine i.
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