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Non-excel solution John borrows 10,000 for 10 years and uses a sinking fund to repay the principal. The sinking fund deposits earn an annual effective

Non-excel solution

John borrows 10,000 for 10 years and uses a sinking fund to repay the principal. The sinking fund deposits earn an annual effective interest rate of 5%. The total required payment for both the interest and the sinking fund deposit made at the end of each year is 1445.04. Calculate the annual effective interest rate charged on loan.

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