Question: A city has two sources to borrow $ 2 0 0 , 0 0 0 . The first source is to borrow at j 1

A city has two sources to borrow $200,000. The first source is to borrow at j1=9% and amortize the debt for 10 years with annual payments of $31,164. For the second source, the money can be borrowed at j1=8% if the interest is paid annually and the principal is repaid in a lump sum at the end of 10 years. Assume that a sinking fund can earn money at j1= x%. Find x.

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