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You have a loan outstanding. It requires making 8 annual payments at the end of the next 8 years of $ 6, 000 each. Your
You have a loan outstanding. It requires making 8 annual payments at the end of the next 8 years of $ 6, 000 each. Your bank has offered to allow you to skip making the next 7 payments in lieu of making one large payment at the end of the loan's term in 8 years. if the interest rate on the loan is 9.97%, 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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