Question: John borrows $200,000 for 10 years. Suppose there are two methods to pay the loan back: 1) Fixed annual payments of $2,000 plus interest on

John borrows $200,000 for 10 years. Suppose there are two methods to pay the loan back:

1) Fixed annual payments of $2,000 plus interest on the unpaid balance at an annual effective rate i

2) Equal annual payments at an annual effective rate 0.065

If the total amount of payments is the same for each plan, what is i?

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