A bank is negotiating a loan. The loan can either be paid off as a lump sum of $80,000 at the end of four years, or as equal annual payments at the end of each of the next four years. If the interest rate on the loan is 6%, what annual payments should be made so that both forms of payment are equivalent?

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B) Calculate PMT with FV = $80,000, 11ea84dc_f57c_0a55_9a63_81648430abba_TB1316_11_TB1316_11 and 11ea84dc_f57c_3166_9a63_ad5e36178cde_TB1316_11_TB1316_11 which gives 11ea84dc_f57c_3167_9a63_cb4a80e2f9d5_TB1316_11_TB1316_11

A Bank Is Negotiating a Loan