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The town of River Heights borrows $10,000,000 at 8% c.a. with interest payable yearly, the full principal due in 20 years. To discharge the debt

The town of River Heights borrows $10,000,000 at 8% c.a. with interest payable yearly, the full principal due in 20 years. To discharge the debt on its due date a sinking fund is established with annual contributions made estimated to earn 4% c.a. Find the effective rate of interest being paid by the town.

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