Bob borrows 2000 to be repaid in 10 years, with end-of-year payments starting at the end of the first year. There are two options how to pay back the loan:

Fixed payments of 200 dollars each year plus interest on the unpaid balance at an annual effective rate of i.

Level payments, at an annual effective rate of 0.065.

Assuming that the total amount of payments will be the same under both plans, find i