Alternatively, if a borrower tells you that he needs a loan for 6 years and 3 months and will pay you an annual rate of 5 1/2% for the loan, but will give you only $141.02 back at the end of the loan term, you should only loan him $100 today. Here is a loan proposition more in line with current interest rates. A borrower agrees to pay you 4% annually for 5 years and 6 months. At the end of the term, he will make a balloon payment of $20000 to repay the loan and the interest. What amount (P) does the formula P = F/e^rt indicate you should loan this prospect?