What is the amount of the original and final payment

Reference no: EM13300104

A loan of $50,000 at 8 percent compounded annually is to be paid off in 25 years by uniform annual payments beginning at the end of the first year. These annual payments proceed on schedule until the end of the eighth year, when the borrower is unable to pay and misses the payment. He negotiates with the lender to increase the remaining payments in such a way that the lender continues to receive 8 percent. What is the amount of the original and final payment in the series?

Reference no: EM13300104

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