Question: Helen borrows $20,000 to be repaid over 15 years with level annual payments with an annual effective interest rate of 8%. The first payment is due one year after she takes out the loan. Helen pays an additional $4,000 at the end of year 9 (in addition to her normal payment). At that time (the end of year 9) she negotiates to pay off the remaining principal at the end of year 14 with a sinking fund. The sinking fund accumulates at an annual effective interest rate of 7%. Helen will make level annual payments. Helen will also make annual interest payments at an annual effective interest rate of 10%. You may assume all payments are made at the end of the year. Determine Helen's total annual outlay starting with year 10.