You have a loan outstanding it requires making four annual


You have a loan outstanding. It requires making four annual payments of $1,000 each at the end of the next four years. Your bank has offered to restructure the loan so that instead of making the four payments as originally agreed, you will make only one final payment in four years. If the interest rate on the loan is 4%.

What final payment will the bank require you to make so that it is indifferent to the two forms of payment?

The final payment the bank will require you to make is $ .

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Financial Management: You have a loan outstanding it requires making four annual
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