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You have a loan outstanding. It requires making 5 annual payments of $6 000 each at the end of the next 5 years. Your bank
You have a loan outstanding. It requires making 5 annual payments of $6 000 each at the end of the next 5 years. Your bank has offered to allow you to skip making the 5 annual payments in lieu of making one large payment at the end of the loan's term in 5 years. If the interest rate on the loan is 7%, what final payment will the bank require you to make so that it is indifferent between the two forms of payment
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