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Business, 25.04.2020 04:23 eross92604

A loan is negotiated with a lender agreeing to accept $8, 000 after one year, $9, 000 after two years, and $20, 000 after four years in full repayment of the loan. The loan is renegotiated so that the borrower makes a single payment of $37,000 at time T and this results in the same total present value of payments when calculated using an annual effective rate of 5%.
Estimate T using the method of equated time. Also find T exactly.

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A loan is negotiated with a lender agreeing to accept $8, 000 after one year, $9, 000 after two year...
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