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 7 ?% over the next 10 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 10?