Amortization method with equal annual payments

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Reference no: EM131880975

A 18-year loan of 19,500 may be repaid under the following two methods:

amortization method with equal annual payments at an annual effective rate of 6.3%

sinking fund method in which the lender receives an annual effective rate of 6.750% and the sinking fund earns an annual effective rate of j.

Both methods require a payment of X to be made at the end of each year for 18 years. Calculate j.

Reference no: EM131880975

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