Question: Problem 3 (20 points): What size loan must we take today with a 10% compound interest rate to have end-of-year payments of $1400, $1320, S1240,

Problem 3 (20 points): What size loan must we take today

Problem 3 (20 points): What size loan must we take today with a 10% compound interest rate to have end-of-year payments of $1400, $1320, S1240, $1160, and $1080 for the next five years, respectively? In other words, if you take out a loan today, and after making all five payments, above, the loan is paid off, what is the value of that loan? Draw the cash flow diagram for this scenario

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