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A payment of $36,000 is made at the end of each year for 31 years to repay a loan of $400,000. If the borrower replaces

A payment of $36,000 is made at the end of each year for 31 years to repay a loan of $400,000. If the borrower replaces the capital by means of sinking fund earning 6% effective. Find the effective rate paid to the lender on the loan.

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