document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=321982>Question 321982</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Your credit card has a balance of $6100.00 and an annula interest rate of 12%. <BR>\n" );
document.write( "You decide to pay off the balance over 4 years. If there are no futher purchases charged to the card:<BR>\n" );
document.write( "A) How much must you pay each month?<BR>\n" );
document.write( "B) How much total interest will you pay?<BR>\n" );
document.write( "THanks for the help!!<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #230521 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=230521\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Balance in credit card account = $6100.00<BR>\n" );
document.write( "Annual Interest Rate is 12%\r<BR>\n" );
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document.write( "Card to be payed off in 4 years without any additional purchases to be made.\r<BR>\n" );
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document.write( "Essentially this is like a loan that you're paying off in 4 years.\r<BR>\n" );
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document.write( "Interest Rate and payments are monthly so we need to make some adjustments.\r<BR>\n" );
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document.write( "Number of Periods of the loan is 4 * 12 = 48.\r<BR>\n" );
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document.write( "Interest rate per period is 12% / 12 = 1%.\r<BR>\n" );
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document.write( "There is an annuity formula to use that I will give you later on.\r<BR>\n" );
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document.write( "In the meantime I will use a financial calculator to solve this problem.\r<BR>\n" );
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document.write( "The financial calculator tells me that the monthly payments need to be $160.6363961.\r<BR>\n" );
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document.write( "You can round that to the nearest penny but I'll leave it as is until I finish with all the calculations.\r<BR>\n" );
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document.write( "The total payment made over the 4 year period will be 48 * $160.6363961 = $7,710.547013.\r<BR>\n" );
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document.write( "Since the balance was $6,100, then the total interest paid was $7,710.547013 minus $6,100 = $1,610.547013.\r<BR>\n" );
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document.write( "The Monthly Details of this analysis are shown below:\r<BR>\n" );
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document.write( "<PRE STYLE=\"white-space: pre-wrap; white-space: -moz-pre-wrap; white-space: -pre-wrap; white-space: -o-pre-wrap; word-wrap: break-word;\">\r\n" );
document.write( "Sum of Principal = $6,100.00\r\n" );
document.write( "Sum of Interest  = $1,610.55\r\n" );
document.write( "$1,610.55\r\n" );
document.write( "TP = Time Period	\r\n" );
document.write( "PP = Payment Principal = Amount of Principal in each Payment.\r\n" );
document.write( "PI = Payment Interest  = Amount of Interest in each Payment.\r\n" );
document.write( "PT = Payment Total     = Amount of Principal + Interest in each Payment.\r\n" );
document.write( "RB = Remaining Balance = Remaining Balance in Account after each Payment\r\n" );
document.write( "                         is made.\r\n" );
document.write( "TP      PP      PI      TP      RB		\r\n" );
document.write( "0                               $6,100.00\r\n" );
document.write( "1	$99.64	$61.00	$160.64	$6,000.36			\r\n" );
document.write( "2	$100.63	$60.00	$160.64	$5,899.73			\r\n" );
document.write( "3	$101.64	$59.00	$160.64	$5,798.09			\r\n" );
document.write( "4	$102.66	$57.98	$160.64	$5,695.44			\r\n" );
document.write( "5	$103.68	$56.95	$160.64	$5,591.75			\r\n" );
document.write( "6	$104.72	$55.92	$160.64	$5,487.04			\r\n" );
document.write( "7	$105.77	$54.87	$160.64	$5,381.27			\r\n" );
document.write( "8	$106.82	$53.81	$160.64	$5,274.45			\r\n" );
document.write( "9	$107.89	$52.74	$160.64	$5,166.55			\r\n" );
document.write( "10	$108.97	$51.67	$160.64	$5,057.58			\r\n" );
document.write( "11	$110.06	$50.58	$160.64	$4,947.52			\r\n" );
document.write( "12	$111.16	$49.48	$160.64	$4,836.36			\r\n" );
document.write( "13	$112.27	$48.36	$160.64	$4,724.09			\r\n" );
document.write( "14	$113.40	$47.24	$160.64	$4,610.69			\r\n" );
document.write( "15	$114.53	$46.11	$160.64	$4,496.16			\r\n" );
document.write( "16	$115.67	$44.96	$160.64	$4,380.49			\r\n" );
document.write( "17	$116.83	$43.80	$160.64	$4,263.66			\r\n" );
document.write( "18	$118.00	$42.64	$160.64	$4,145.66			\r\n" );
document.write( "19	$119.18	$41.46	$160.64	$4,026.48			\r\n" );
document.write( "20	$120.37	$40.26	$160.64	$3,906.11			\r\n" );
document.write( "21	$121.58	$39.06	$160.64	$3,784.53			\r\n" );
document.write( "22	$122.79	$37.85	$160.64	$3,661.74			\r\n" );
document.write( "23	$124.02	$36.62	$160.64	$3,537.72			\r\n" );
document.write( "24	$125.26	$35.38	$160.64	$3,412.46			\r\n" );
document.write( "25	$126.51	$34.12	$160.64	$3,285.95			\r\n" );
document.write( "26	$127.78	$32.86	$160.64	$3,158.17			\r\n" );
document.write( "27	$129.05	$31.58	$160.64	$3,029.12			\r\n" );
document.write( "28	$130.35	$30.29	$160.64	$2,898.77			\r\n" );
document.write( "29	$131.65	$28.99	$160.64	$2,767.12			\r\n" );
document.write( "30	$132.97	$27.67	$160.64	$2,634.16			\r\n" );
document.write( "31	$134.29	$26.34	$160.64	$2,499.86			\r\n" );
document.write( "32	$135.64	$25.00	$160.64	$2,364.23			\r\n" );
document.write( "33	$136.99	$23.64	$160.64	$2,227.23			\r\n" );
document.write( "34	$138.36	$22.27	$160.64	$2,088.87			\r\n" );
document.write( "35	$139.75	$20.89	$160.64	$1,949.12			\r\n" );
document.write( "36	$141.15	$19.49	$160.64	$1,807.98			\r\n" );
document.write( "37	$142.56	$18.08	$160.64	$1,665.42			\r\n" );
document.write( "38	$143.98	$16.65	$160.64	$1,521.44			\r\n" );
document.write( "39	$145.42	$15.21	$160.64	$1,376.01			\r\n" );
document.write( "40	$146.88	$13.76	$160.64	$1,229.14			\r\n" );
document.write( "41	$148.35	$12.29	$160.64	$1,080.79			\r\n" );
document.write( "42	$149.83	$10.81	$160.64	$930.96			\r\n" );
document.write( "43	$151.33	$9.31	$160.64	$779.64			\r\n" );
document.write( "44	$152.84	$7.80	$160.64	$626.80			\r\n" );
document.write( "45	$154.37	$6.27	$160.64	$472.43			\r\n" );
document.write( "46	$155.91	$4.72	$160.64	$316.52			\r\n" );
document.write( "47	$157.47	$3.17	$160.64	$159.05			\r\n" );
document.write( "48	$159.05	$1.59	$160.64	$0.00			\r\n" );
document.write( "</PRE>\r<BR>\n" );
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document.write( "The formula for Payment of a Present Amount is the formula you use to solve this type of problem.\r<BR>\n" );
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document.write( "That formula is shown below:\r<BR>\n" );
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document.write( "PAYMENT FOR A PRESENT VALUE\r<BR>\n" );
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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" );
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document.write( "PV = $6,100<BR>\n" );
document.write( "i = .12 / 12 = .01<BR>\n" );
document.write( "n = 4 * 12 = 48\r<BR>\n" );
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document.write( "Plug these values into the equation and solve.\r<BR>\n" );
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document.write( "Equation becomes:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+PMT%286100%29+=+%286100+%2F+%28%28%28%281+-+%281+%2F+%28%281.01%29%5E48%29%29%29%29%2F.01%29%29%29+ ALIGN=MIDDLE   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "After plugging the value into this equation, you should come up with:\r<BR>\n" );
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document.write( "PMT(6100) = 160.6363961\r<BR>\n" );
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document.write( " </SPAN>\n" );
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