Find the Periodic Payment Required to Repay $21,860 Over 12

question 284

Multiple Choice

Find the periodic payment required to repay $21,860 over 12 years, with monthly payments at a 10% annual rate.Round to the nearest cent.

• A)P = $261.24
• B)P = $380.28
• C)P = $221.56
• D)P = $340.60
• E)none of the above

---

Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends, but instead reinvested in the business.

Constant Fraction

A concept in finance where a fixed percentage of an investment is allocated or rebalanced regularly to maintain a desired asset ratio.

Additional Debt

New borrowing by an individual or entity, adding to any existing obligations, and impacting financial leverage and risk profile.

Maximum Capacity

The highest level of output that a company can sustain to make a product or provide a service, under normal conditions.