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Fully amortized loan ( annual payments for principal and interest with the same amount each year ) . Chuck Ponzi has talked an elderly woman
Fully amortized loanannual payments for principal and interest with the same amount each year Chuck Ponzi has talked an elderly woman into loaning him $ 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 $ with an annual interest rate of over the next years. Determine the cash flow to the woman under a fully amortized loan, in which Ponzi will make equal annual payments at the end of each year so that the final payment will completely retire the original $ loan.
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