nterest-only loan(regular interest payments each year and principal atmaturity).Chuck Ponzi has talked an elderly woman into loaning him $25 comma 000

25,000 for a new business venture. Shehas, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $25 comma 000

25,000 with an annual interest rate of 12

12% over the next 10

10 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 9