Question: A bank is negotiating a loan. The loan can either be paid off as a lump sum of R100 000 after five years, or in

A bank is negotiating a loan. The loan can either be paid off as a lump sum of R100 000 after five years, or in equal 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 ofpayment are equivalent.

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