Question $6$

A loan of $1,500$ is to be repaid with payments made at the end of each year for $20$ years. There

are two repayment options:

$($i$)$ Equal payments at an annual effective interest rate of $$

$($ii$)$ Nonlevel payments of interest on the unpaid balance at an annual effective interest

rate of $i,$ plus $$75$ of the principal

The sum of the payments is the same under these two options

Calculate $i$

$****($beta $=0\mathrm{.}048)*****$