Solution-What final payment will the bank require

What final payment will the bank require

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Reference no: EM13553555

You have a loan outstanding. It requires making three annual payments of $1000 each at the end of the next three years. Your bank has offered to allow you to skip making the next two payments in lieu of making one large payment at the end of the loan's term in three years. If the interest rate on the loan is 5%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment?

Reference no: EM13553555

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What final payment will the bank require : If the interest rate on the loan is 5%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment?

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What final payment will the bank require

Reference no: EM13553555

Reference no: EM13553555

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