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Part $1$

Amortization schedule.$$Chuck Ponzi has talked an elderly woman into loaning him

$$$$40$ comma $00040,000$

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

$ $40$ comma $000$$$40,000$

with an annual interest rate of

$77\%$

over the next

$55$

years. Ponzi may choose to pay off the loan early if interest rates change during the next

$55$

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.