You have a loan outstanding. It requires making seven annual payments at the end of the next three years of $9,000 each. Your bank has offered to allow you to skip making the next 6 payments in lieu of making one large payment at the end of the loans term in 7 years. If the interest rate on the loan is 2.13%, what final payment will the bank require you to make so that it is indifferent between the two forms of payment?

What is the present value of cash flows?

The future value?