Sunday, 29 September 2019

You have a loan outstanding. It requires making six annual payments of $ 7,000 each at the end of the next

You have a loan outstanding. It requires making six annual payments of $ 7,000 each at the end of the next six years. Your bank has offered to restructure the loan so that instead of making the six payments as originally​ agreed, you will make only one final payment in six years. If the interest rate on the loan is 9%​, 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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