Ryan wishes to borrow 10000.Meade and Halliday offer to lend the money with following term:

Meade would be repaid with 10 equal annual payment made at the end of each year at 8% interest effective annually.

Halliday charges an annual effective interest rate of I with Ryan accumulating the amount necessary to repay the loan by means of 10 annual deposits at the end of each year into sinking fund earning 7% interest effective annually.

The total payment(principal and interest) is same for Maede and Halliday.

Calculate I.

 Curlyben Posts: 18,726, Reputation: 8983 Admin & Wine Expert #2 Feb 27, 2011, 09:38 AM
Thank you for taking the time to copy your homework to AMHD.

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