Question
A bank is negotiating a loan. The loan can either be paid off as a lump sum of $120,000 at the end of five years,
A bank is negotiating a loan. The loan can either be paid off as a lump sum of
$120,000
at the end of
five
years, or as equal annual payments at the end of each of the next
five
years. If the interest rate on the loan is
12%,
what annual payments should be made so that both forms of payment are equivalent?
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The Finance Book
Authors: Stuart Warner, Si Hussain
1st Edition
1292123648, 978-1292123646
