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P4-18 (similar to) 15 Question Help Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $50,000 for
P4-18 (similar to) 15 Question Help Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $50,000 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 $50,000 with an annual interest rate of 9% over the next 10 years. Determine the cash flow to the woman under a discount loan, in which Ponzi will have a lump-sum payment 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? $ (Round to the nearest cent.) Interest-only loan (regular interest payments each year and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $15,000 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 $15,000 with an annual interest rate of 6% over the next 5 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. What is the amount of payment that the woman will receive at the end of years 1 through 4? $ (Round to the nearest dollar.)
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