A person wishes to borrow 30000 from a bank and repay the

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Reference no: EM13617536

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).

Reference no: EM13617536

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