Question: (2 points) (Exercise 5.24) A borrows $2000 for 15 years at an annual effective interest rate of 9%. A can repay this loan using the

(2 points) (Exercise 5.24) A borrows $2000 for 15 years at

(2 points) (Exercise 5.24) A borrows $2000 for 15 years at an annual effective interest rate of 9%. A can repay this loan using the amortization method with payments of P at the end of each year. Instead. A repays the loan using a sinking fund that pays an annual effective rate of 12%. The deposits to the sinking fund are equal to P minus the interest on the loan and are made at the end of each year for 15 years. Determine the balance in the sinking fund immediately after repayment of the loan. ANSWER =$ 500.75

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