Cash flow to woman under an interest-only loan

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Reference no: EM132023827

Saud has talked an elderly woman into loaning him $43,425 for a new business venture. She has, however, successfully passed a finance class and requires Saud to sign a binding contract on repayment of the $43,425 with an annual interest rate of 6.7% over the next 10 years. Determine the cash flow to the woman under an interest-only loan, in which Saud 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 the loan in year 10?

Reference no: EM132023827

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