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Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $50,000 for a new business venture. She has,
Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $50,000 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 $50,000 with an annual interest rate of 7% over the next 10 years. Determine the cash flow to the woman under a discount loan, in which Ponzi will have a lump-sum payment at the end of the contract
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