Interest-only loan(regular interest payments each year and principal atmaturity).Chuck Ponzi has talked an elderly woman into loaning him $30,000. or a new business venture. Shehas, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $30,000 with an annual interest rate of 6% 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.

What is the amount of payment that the woman will receive at the end of years 1 through 4?