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A loan of 20,000 is being repaid with annual payments for 5 years using the sinking fund method. The loan charges 10% interest compounded twice

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A loan of 20,000 is being repaid with annual payments for 5 years using the sinking fund method. The loan charges 10% interest compounded twice a year. The sinking fund earns 8% compounded monthly. Calculate: (a) the interest payment that is paid annually to service the loan (b) the sinking fund deposit

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