You have a loan outstanding. It requires making five annual payments of $8.000 each at...
50.1K
Verified Solution
Link Copied!
Question
Finance
image
You have a loan outstanding. It requires making five annual payments of $8.000 each at the end of the next five years Your bank has offered to allow you to skip making the next four payments in lieu of making one large payment at the end of the loan's term in five 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? The final payment the bank will require you to make is 5 (Round to the nearest dollar) 19 19
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
