Interest-only loan (regular interest payments each year and principal at maturity).Chuck Ponzi has talked an elderly woman into loaning him $25,000

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 $25,000

with an annual interest rate of 6% over the next 15 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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Part 1

What is the amount of payment that the woman will receive at the end of years 1 through 14?