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 7% 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.)

Answer rating: 100% (QA)

For a discount loan the borrower receives less than the face value of the loan upfro... View the full answer