Jason and Margaret each take out a 17-year loan for L.
- Jason repays his loan using the amortization method, at an annual effective interest rate of i. he makes an annual payment of 500 at the end of each year.
- Margaret repays her loan using the sinking fund method. She pays interest annually, also at an annual effective interest rate of i. in addition, Margaret makes level annual deposits at the end of each year for 17 years inot a sinking fund. The annual effective rate on the sinking fund is 4.62%, and she pays off the loan after 17 years, depleting the sinking fund entirely.
Margaret's total annual outlay is equal to 10% of the original loan amount. Calculate the original loan amount L.