Answer:
Ans. From years 1 through 14 she will receive $4,200 and ending year 15 she will receive $39,200 (which is $35,000 of the loan plus $4,200 interest)
Step-by-step explanation:
Hi, this works just like a bond with a coupon, so first we need to find the amount of interest that she is going to receive every year, at the end of the year, with an annual interest rate of 12%.


So, that is what she will receive every year at the end of the year from yr1 through 14. in year 15 she will get $39,200, which is the interest + the principal, in our case, $35,000.
Best of luck.