You have a loan outstanding it requires making eight annual


You have a loan outstanding. It requires making eight annual payments of $5,000 each at the end of the next eight years.

Your bank has offered to restructure the loan so that instead of making the eight payments as originally agreed, you will make only one final payment in eight years.

If the interest rate on the loan is 2%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment? The final payment the bank will require you to make is $ (Round to the nearest dollar.)

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Financial Management: You have a loan outstanding it requires making eight annual
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