You have a loan outstanding. It requires making 4 annual payments at the end of the next4years of$ 1,000each. Your bank has offered to allow you to skip making the next 3 payments in lieu of making one large payment at the end of the? loan’s term in4years. If the interest rate on the loan is6.94 %what final payment will the bank require you to make so that it is indifferent between the two forms of? payment?
