clients agree to the following loan repayment schedule:

Repayment time: 30 years.

Frequency of payment: annual.

Repayment amount: 1841700 per year.

First repayment: one year from now.

1. compute the present value of the loan repayment schedule from the point of view of the bank. Considering the credit risk involved, the bank considers 4.5% an adequate interest rate for discounting the cash flows. Discuss your result. [5 points]