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1. (10 pts) A person wishes to borrow $25,000 from a bank and repay the loan in a single lump sum payment 4 years from
1. (10 pts) A person wishes to borrow $25,000 from a bank and repay the loan in a single lump sum payment 4 years from the date of the initiation of the loan. If the annual interest rate for the loan is 4%, what is the lump sum payment? (a) Show a cash flow diagram from the standpoint of the borrower. (b) Show a cash flow diagram from the standpoint of the lender. (c,d) Show your calculations and the final answer(s). 2. (10 pts) You are investing in a scheme which will pay you 16% annual interest. The scheme requires you to invest end-of-period annual amounts of $7,500 until the amount in the account is $140,000. What is the minimum number of years required to meet (or exceed) your goal
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