Question
Chuck Ponzi has talked an elderly woman into loaning him dollar 30, 000 for a new business venture. She has, however. successfully passed a finance
Chuck Ponzi has talked an elderly woman into loaning him dollar 30, 000 for a new business venture. She has, however. successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the dollar 30.000 with an annual interest rate of 11% over the next 5 years. Ponzi may choose to pay off the loan early if the interest rate change during the next 5 years. Determine the ending balance of the loan each year under the three different payment plans: A) the discount loan. B) the interest-only loan C) the fully amortized loans.
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