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You have a loan outstanding. It requires making 3 annual payments at the end of the next 3 years of $ 2 , 0 0
You have a loan outstanding. It requires making annual payments at the end of the next years of $ each. Your bank has offered to allow you to skip making the next payments in lieu of making one large payment at the end of the loan's term in years. If the interest rate on the loan is what final payment will the bank require you to make so that it is indifferent between the two forms of payment?
The present value of the cash flows is $
Round to the nearest cent.
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