Please show step by step. Do not use excel Amy plans to repay a loan...
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Please show step by step. Do not use excel
Amy plans to repay a loan of $360,000 by making payments of $60,000 at the end of each year for 10 years. She replaces the capital by means of a sinking fund and pays interest on the loan at an annual effective rate of 25/3 %. Calculate the effective annual interest rate earned by the sinking fund.
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