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Present value of the cash flows

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You have a loan outstanding. It requires making 7 annual payments at the end of the next 7 years of $ 1 comma 000 each. Your bank has offered to allow you to skip making the next 6 payments in lieu of making one large payment at the end of the? loan's term in 7 years. If the interest rate on the loan is 8.02 %?, what final payment will the bank require you to make so that it is indifferent between the two forms of? payment?

The present value of the cash flows is ?$. ?(Round to the nearest? dollar.)

Reference no: EM132224090

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