Problem:
A borrower is repaying a loan with 10 annual installments of $2000. Half of the loan is repaid by the amortization method at an effective rate of i=0.06. The other half of the loan is repaid by the sinking fun method in which the lender receives i=0.06 and the sinking fun accumulates at i=0.05.
Required:
Question: Find the amount of the loan to the nearest dollar.
Note: Provide support for your rationale.