document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=322872>Question 322872</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Gene purchased a condo for 90,000. He made a 15% down payment and assumed a 9% morgage for 20 years. Find the monthly payment and the finance charge </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #231161 by </B><A HREF=/tutors/aboutme.mpl?userid=mananth><B>mananth(16946)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=mananth><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=mananth><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=231161\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Condo price $ 90,000<BR>\n" );
document.write( "15% down payment = 13500<BR>\n" );
document.write( "Balance to be paid = 90000-14500=75500\r<BR>\n" );
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document.write( "The formula for monthly payment <BR>\n" );
document.write( "C=Po[r(1+r)^n / (1+r)^n-1]<BR>\n" );
document.write( "Po=76500<BR>\n" );
document.write( "r=9% ( 0.09/12)=0.0075<BR>\n" );
document.write( "n=20 years = 240 months\r<BR>\n" );
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document.write( "..<BR>\n" );
document.write( "(1+r)^n= (1+0.0075)^240=6.009<BR>\n" );
document.write( "..<BR>\n" );
document.write( "r(1+r)^n=0.0075*6.009=0.0450<BR>\n" );
document.write( "..<BR>\n" );
document.write( "(1+r)^n-1= 6.009-1= 5.009<BR>\n" );
document.write( "..<BR>\n" );
document.write( "r(1+r)^n/(1+r)^n-1 = 0.0450/5.009=0.00898<BR>\n" );
document.write( "--<BR>\n" );
document.write( "Po*0.00989=76500*0.00989= 687.26 per month </SPAN>\n" );
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