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a) Under what conditions will the amortization method and the sinking fund method of loan repayment equivalent? b) Distinguish between effective rate of interest, i

a) Under what conditions will the amortization method and the sinking fund method of loan repayment equivalent?

b) Distinguish between effective rate of interest, i and norminal rate.of interest. Write the mathematical equation that relates these two measures of interest at any given time; t > or equal to 0.

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