Indifferent between the two forms of? payment

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Reference no: EM131822088

You have a loan outstanding. It requires making 3 annual payments at the end of the next 3 years of $ 1,000 each. Your bank has offered to allow you to skip making the next 2 payments in lieu of making one large payment at the end of the? loan's term in 3 years. If the interest rate on the loan is 5.00 %?, 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.

Reference no: EM131822088

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