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A company takes out a loan of 50,000 at an annual effective discount rate of 5.0%. You are given: (The loan is to be repaid
A company takes out a loan of 50,000 at an annual effective discount rate of 5.0%. You are given: (The loan is to be repaid with n annual payments of 5,000 plus a drop payment one year after the nth payment. ( The first payment is due four years after the loan is taken out. Calculate the amount of the drop payment. 1,836 2.790 3.162 3,241 4,259
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