document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=256017>Question 256017</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Luis borrowed $125,700.00 in stafford and plus loans for his 3 years at USc Law school.  During the 3 years of school, the loan amount rose to $132,110.70.  The annual interest rate is 2.3 % once he has graduated from law school.   Luis is required to pay back the loans within 10 years.  What is the minimum monthly payment that luis must make ?  I'm having problems coming out with the correct answer... Thanks </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #188180 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=188180\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Luis borrowed $125,700.00\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "during his 3 years of school, the loan amount increased to $132,110.70.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "he has to pay back this loan in 10 years at 3.2% interest per year compounded monthly.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "what are the monthly payments?\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the formula you will want to use is the payment for a present value formula.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "that formula is:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+PMT%28PV%29+=+%28PV+%2F+%28%28%28%281+-+%281+%2F+%28%281%2Bi%29%5En%29%29%29%29%2Fi%29%29%29+ ALIGN=MIDDLE   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "PMT = Payment per Time Period	<BR>\n" );
document.write( "PV = Present Value<BR>\n" );
document.write( "i = Interest Rate per Time Period<BR>\n" );
document.write( "n = Number of Time Periods\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "PV = Present Value = $132,110.70 which the amount of the loan that has to be paid back.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "i = interest rate per time period = 3.2% / 100% = .032 / 12 = .0026666667\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "n = number of time periods = 10 years * 12 = 120 months.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your formula becomes:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+PMT%28PV%29+=+%28132110.70+%2F+%28%28%28%281+-+%281+%2F+%28%281.002666667%29%5E120%29%29%29%29%2F.002666667%29%29%29+ ALIGN=MIDDLE   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "this becomes:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "PMT(PV) = 1287.903449.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "monthly payments are 1287.903449 = $1,287.90\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "to confirm this answer is correct, you can plug it into the present value of a payment formula shown below:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+PV%28PMT%29+=+%28PMT+%2A+%281+-+%281+%2F+%281%2Bi%29%5En%29%29%2Fi%29+ ALIGN=MIDDLE  ALT=\"+PV%28PMT%29+=+%28PMT+%2A+%281+-+%281+%2F+%281%2Bi%29%5En%29%29%2Fi%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "PV = present value<BR>\n" );
document.write( "PMT = payment per time period<BR>\n" );
document.write( "i = interest rate per time period<BR>\n" );
document.write( "n = number of time periods\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "PMT = 1287.903449<BR>\n" );
document.write( "i = 3.2% / 100% = .032 / 12 = .0026666667 per month.<BR>\n" );
document.write( "n = 10 * 12 months per year = 120 months.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "formula becomes:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+PV%28PMT%29+=+%281287.903449+%2A+%281+-+%281+%2F+%281.0026666667%29%5E120%29%29%2F.0026666667%29+ ALIGN=MIDDLE   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "this becomes:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "PV(PMT) = 132110.7\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "since this is what we started out with, the formula is good and the answer is:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your monthly payments are $1287.90.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );