Question: Smith borrows 3 0 , 0 0 0 at an annual effective interest rate of 1 0 % . He agrees to make annual payments

Smith borrows 30,000 at an annual effective interest rate of 10%. He agrees to
make annual payments at the end of each year for 9 years, and an additional
balloon payment, X, at the end of the tenth year. Each of the first 9 payments
equals 25% more than what is owed in interest at the time of the payment.
The balloon payment, X, equals the amount needed to pay off the loan.
Determine X.
THe answer should be 26275.7718

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