1. A 10 year loan of $2000 can be repaid with payments of $K at the end of each year at an effective interest rate of 10%. However, the borrower decides pay only the interest at the end of each year,...

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Extracted text: 1. A 10 year loan of $2000 can be repaid with payments of $K at the end of each year at an effective interest rate of 10%. However, the borrower decides pay only the interest at the end of each year, and sets up a sinking fund that pays an annual effective rate of 12%. The deposits to the sinking fund are $K minus the interest on the loan, and are made at the end of each year for 10 years. Determine the balance in the sinking fund immediately after the repayment of the loan. I would like to see the work... not how to do it in excel. I WILL GIVE A THUMBS UP!! :)