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Smith borrows $3000 and agrees to establish a sinking fund to repay the loan at the end of 10 years. Interest at 8% on the

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Smith borrows $3000 and agrees to establish a sinking fund to repay the loan at the end of 10 years. Interest at 8% on the debt is paid annually as it falls due. Level annual deposits to the sinking fund are made at the end of each year, with interest accumulating at an effective annual rate of 5% for the first 4 years and 3% thereafter. Find the size of the sinking fund payment

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