You have a loan outstanding. It requires making six annual payments at the end of the next
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You have a loan outstanding. It requires making six annual payments at the end of the next six years of $9000 each. Your bank has offered to restructure the loan so that instead of making the three payments as originally agreed, you will make only one final payment at the end of the loan in six years. If the interest rate on the loan is 9.85%, what final payment will the bank require you to make so that it is indifferent between the two forms of payment?
Calculating the Net Present Value AppendixLO1
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Related Book For
Corporate Finance The Core
ISBN: 9781292431611
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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