Question: Problem 39.1 (this problem is for context, it is needed for problem 39.2) A loan of 10,000 is being repaid with annual payments for 10

Problem 39.1 (this problem is for context, it is needed for problem 39.2) A loan of 10,000 is being repaid with annual payments for 10 years using the sinking fund method. The loan charges 10% interest and the sinking fund earns 8%. (a) Calculate the interest payment that is paid annually to service the loan. (b) Calculate the sinking fund payment made annually. (c) Calculate the amount in the sinking fund immediately after the deposit made at the end of 5 years. (d) Create the sinking fund schedule for the loan.

Problem 39.2 If the loan in Problem 39.1 was repaid using the amortization method, but the annual payment was equal to the sum of the interest payment and the sinking fund deposit, calculate the interest rate under the amortization method.

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