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P4-20 (similar to) Question Help Fully amortized loan (annual payments for principal and interest with the same amount each year). Chuck Ponzi has talked an
P4-20 (similar to) Question Help Fully amortized loan (annual payments for principal and interest with the same amount each year). 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 9% over the next 5 years. Determine the cash flow to the woman under a fully amortized loan, in which Ponzi will make equal annual payments at the end of each year so that the final payment will completely retire the original $35,000 loan. What is the amount of payment that the woman will receive at the end of years 1 through 5? $ (Round to the nearest cent.) Amortization schedule. Chuck Ponzi has talked an elderly woman into loaning him $45,000 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 $45,000 with an annual interest rate of 11% over the next 5 years. Ponzi may choose to pay off the loan early if interest rates change during the next 5 years. Determine the ending balance of the loan each year under the three different payment plans: a. the discount loan b. the interest-only loan c. the fully amortized loan. a. If Chuck chooses the discount loan, what is the ending balance of the discount loan in year 1? $ | (Round to the nearest cent.)
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