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Eddy borrows 50,000 for 5 years at an annual effective interest rate of 5%. At the end of year, he pays the interest on the
Eddy borrows 50,000 for 5 years at an annual effective interest rate of 5%. At the end of year, he pays the interest on the loan and deposits the level amount necessary to repay the principal to a sinking fund earning an annual effective interest rate of 3%.
The total interest paid by Eddy over the 5 year period is X.
Calculate X.
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