You have a loan outstanding. It requires making four annual payments of $8,000 each at the...

You have a loan outstanding. It requires making

four

annual payments of

$8,000

each at the end of the next

four

years. Your bank has offered to restructure the loan so that instead of making the

four

payments as originally agreed, you will make only one final payment in

four

years. If the interest rate on the loan is

9%,

what final payment will the bank require you to make so that it is indifferent to the two forms of payment?

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jeff jeffy answered 2 years ago

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