A person wishes to borrow $30,000 from a bank and repay the loan in a single lump sum payment 6 years from the date of the initiation of the loan. If the annual interest rate for the loan is 8%, what is the lump sum payment?
(a) Show a cash flow diagram from the standpoint of the borrower.
(b) Show a cash flow diagram from the standpoint of the lender.
(c, d) Show your calculations and the final answer(s).