Negotiating the Rate.A sovereign borrower is considering a $100 million loan for a 4-year maturity. It will be an amortizing loan, meaning that the interest and principal payments will total, annually, to a constant amount over the maturity of the loan. There is, however, a debate over the appropriate interest rate. The borrower believes the appropriate rate for its current credit standing in the market today is 8%, but a number of international banks with which it is negotiating are arguing that is most likely 13%, at the minimum 8%. What impact do these different interest rates have on the prospective annual payments?

The annual payment, if the interest rate was 8%, is ___ (Round to the nearest dollar.)

The annual payment, if the interest rate was 13%, is ___ (Round to the nearest dollar)

The difference in annual payment? ____