Assume coupons paid semi-annually, coupon rates and yields quoted with semi-annual compounding, and redeemable at par unless otherwise noted.

Andy borrows $10000 for 8 years at an annual effective interest rate of 9%. Andy can repay this loan using the amortization method with payments of P at the end of each year. Instead, Andy repays the loan using a sinking fund that pays an annual effective rate of 11%. The deposits to the sinking fund are equal to P minus the interest on the loan and are made at the end of each year for 8 years. Determine the balance in the sinking fund immediately after the repayment of the loan.