A loan of550.000 is due 10 years from today. The borrower wams to make annual payments at the cnd of each year into a sinking fund Ihat will earn inten~st at an annual rate of 10 Verc!!'.;:!£.

What \\ i1l1he annual payments have to be? Suppos;;' that the 1110mhiy poyml?i1t..;; eJrn 10 p::rcem inlcresL compouJH.k.d lIl o111hly. What would the annual p~ lnems h3\·e to be'!

AppendixLO1