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Interest - only loan ( regular interest payments each year and principal at maturity ) . Chuck Ponzi has talked an elderly woman into loaning

Interest-only loan (regular interest payments each year and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $35,000 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 $35,000 with an annual interest rate of 10% over the next 20 years. Determine the cash flow to the woman under an interest-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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