Question: Problem 8. James borrows 3000 from Hank for 8 years at an annual effective interest rate of i. He accumulates the amount necessary to repay

Problem 8. James borrows 3000 from Hank for 8 years at an annual effective interest rate of i. He accumulates the amount necessary to repay the loan by using a sinking fund. He makes 8 payments of S at the end of each year, which includes interest on the loan and the payment into the sinking fund, which earns an annual effective rate of 10%. If the annual effective rate of the loan had been 3i, his total annual payment would have been 1.5S. Calculate

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