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Indifferent to the two forms of payment

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You have a loan outstanding. It requires making eighteight annual payments of $3,000 each at the end of the next eighteight years. Your bank has offered to restructure the loan so that instead of making the eighteight payments as originally agreed, you will make only one final payment in eighteight years. If the interest rate on the loan is 7%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment?

Reference no: EM131821450

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