What are the annual payments

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A value of $10,000,000 is assigned to Sam's shares. Sam has stated that he is open to any reasonable plan to finance the purchase.

1.) Rose could probably borrow the money to purchase shares outright because the shares would serve as collateral and dividends would cover a good part of the loan payments. the interest rate is 7% and the lender will amortize the loan with a series of equal payments. what are the annual payments if the bank amortizes the loan over 5, 10, or 20 years?

2.) Repeat question 1, but assume Rose makes payments at the beginning of each year.

Reference no: EM13263113

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