Question: Cindy borrows $ 1 3 , 8 0 0 for twelve years at an annual effective interest rate of i . She accumulates the amount

Cindy borrows $13,800 for twelve years at an annual effective interest rate of i. She accumulates the amount necessary to repay the loan by a sinking fund. Cindy makes a payment of P at the end of each of the twelve years of the loan period; each includes payment on the loan at an annual effective interest rate of i and payment into a sinking fund on which the annual effective interest rate is 4%. If the annual effective rate on the loan had been 2i instead of i, Cindy's total annual payment would have been 1.3P. Find the amount P.(Round your answer to the nearest cent.)

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