A $10 000 Loan Advanced on February 15 at a 10

question 72

Essay

A $10 000 loan advanced on February 15 at a 10% interest rate requires equal payments after 61 days, 122 days and 183 days from the day of the loan. What should be the value of the equal payments?

---

Definitions:

Dividend Yield

A measure of how a company's annual dividend disbursement stands in relation to the price of its stocks.

Annual Cash Dividends

The total amount of cash payments made to shareholders from a company's earnings over one fiscal year.

Market Value

The prevailing market rate at which a service or asset is available for purchase or sale.

Par Value Common Stock

The nominal or face value assigned to common stock shares in the corporate charter, which may differ significantly from the market value.