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Chuck Ponzi has talked an elderly woman into loaning him $ 2 5 , 0 0 0 for a new business venture. She has ,

Chuck Ponzi has talked an elderly woman into loaning him $25,000 for a new business venture. Shehas, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $25,000 with an annual interest rate of 10% over the next 5 years. Determine the cash flow to the woman under aninterest-only loan, in which Ponzi will pay the annual interest expense each year and pay the principal back at the end of the contract.

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