Question
In: Finance
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?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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you have an outstanding student loan with required payments of $550 per month for the next...
you have an outstanding student loan with required payments
of
$550
per month for the next four years. The interest rate on the loan
is
10%
APR. You are considering making an extra payment of
$100
today? (that is, you will pay an extra
$100
that you are not required to? pay).
a. If you are required to continue to make
payments of
$550
per month until the loan is paid? off, what is the amount of
your final? payment???...
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