The sinking fund schedule for a loan of $1,000 repaid over four years is given below. The annual effective interest rate on the loan is i. The annual effective interest rate of the sinking fund is j.

(a) Determine the value of i. (b) Determine the value of j.

SF DEPOSIT TIME (in years) INTEREST ON LOAN INTEREST ON SF NET BALANCE ON LOAN SF BALANCE AFTER DEPOSIT 0 0 0 0 0 1000 1 100 221.92 0 221.92 778.08 2 100 221.92 17.75 461.59 538.41 3 100 221.92 36.93 720.44 279.56 4 100 221.92 57.64 1000 0