2 part question. explain both answers in detail. Discount loan (interest...
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2 part question. explain both answers in detail.
Discount loan (interest 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 7% 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 97 (Round to the nearest cent.)
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