Cindy borrows 13500 for twelve years at an annual effective interest rate of i. She accumulates the amount necessary to repay the loan by a sinking fund. Cindy makes a payment of P at the end of each of the twelve years of the loan period; each includes payment on the loan at an annual effective interest rate of i and payment into a sinking fund on which the annual effective interest rate is 4%. If the annual effective rate on the loan had been 2i instead of i, Cindy's total annual payment would have been 1.2P. Find the amount P.

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ANSWER IN BACK OF THE BOOK: 1,123.07

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DUE DATE: TODAY 12/1/15 by 10pm