Loan outstanding-indifferent to the two forms of payment

Assignment Help Financial Management

Reference no: EM131456310

You have a loan outstanding. It requires making three annual payments of $3000 each at the end of the next 7 years. Your bank has offered to restructure the loan so that instead of making the three payments as originally agreed, you will make only one final payment in 7 years. If the interest rate on the loan is 8% what final payment will the bank require you to make so that it is indifferent to the two forms of payment?

Reference no: EM131456310

Questions Cloud

Why does the approach to team-building work : Why does this approach to team-building work? How might the "jazz metaphor" be useful for teams? How might this approach be applied to other situations?

Mortgage from the local savings and loan : Yale Mortgage Purchasing Company (YMPC) wants to buy your mortgage from the local savings and loan.

Develop a plan and a strategy for a company : CIB3303- E-Business Principles Computer and Information Science Division (CIS). develop a plan and a strategy for a company that you are willing to build in UAE

What is the annual percentage rate on the loan : You are the owner and operator of Grains Plus located at Bathurst NSW. The rain during the spring have been the best in a decade and you are expecting.

Loan outstanding-indifferent to the two forms of payment : You have a loan outstanding. what final payment will the bank require you to make so that it is indifferent to the two forms of payment?

What is the total grp of the ads : FOX's drama series Empire has an average rating of 4.2. If McDonald's runs six television spots on Empire over a two-month period,

Identify and explain your planned negotiation tactics : Identify and explain your planned negotiation tactics. Then, provide an explanation of the stages to the rest of the negotiation team.

Calulate the portfolio beta : You are the owner and operator of Grains Plus located at Bathurst NSW. The rain during the spring have been the best in a decade and you are expecting.

Analyst is evaluating securities in a developing nation : An analyst is evaluating securities in a developing nation where the inflation rate is very high.

User Account

All Pages