What annual payments should be made

Reference no: EM13263026

A bank is negotiating a loan. The loan can either be paid off as a lump sum of $100,000 at the end of each of the next five years or as equal annual payments at the end of each of the next five years. If the interest rate on the loan is 10%, what annual payments should be made so that both forms of payment are equivalent?

Reference no: EM13263026

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