document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=756248>Question 756248</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Maria wants to buy a car but has little money. The dealer offers $5,000 at 12% compounded daily for 7 years. Maria doesn't have to make monthly payments, but must pay off the loan in full after 7 years. How much must Maria pay?\r<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 #460068 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=460068\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> assuming there are 365 days in a year, the daily interest rate is equal to .12 divided by 365 which is equal to .000328767 per day.\r<BR>\n" );
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document.write( "the number of time periods is equal to 365 * 7 which is equal to 2555.\r<BR>\n" );
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document.write( "add 1 to the interest rate per day and raise that to the power of 2555 to get:\r<BR>\n" );
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document.write( "1.000328767 ^ 2555 = 2.316047218\r<BR>\n" );
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document.write( "multiply 5000 by 2.31..... to get 11580.23609\r<BR>\n" );
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document.write( "at the end of 7 years, she will have to pay the dealer $11,580.24.\r<BR>\n" );
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document.write( "with no payments, this is a future value of a present amount formula which is:\r<BR>\n" );
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document.write( "f = p * (1 + i/c) ^ (y * c)\r<BR>\n" );
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document.write( "f = future value<BR>\n" );
document.write( "p = present amount<BR>\n" );
document.write( "i = annual interest rate (apr)<BR>\n" );
document.write( "c = number of compounding periods per year.<BR>\n" );
document.write( "y = number of years\r<BR>\n" );
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document.write( "based on your information and assuming 365 days per year, the formula becomes:\r<BR>\n" );
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document.write( "f = 5000 * (1 + (.12/365)) ^ (7*365)\r<BR>\n" );
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document.write( "that becomes:\r<BR>\n" );
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document.write( "f = 5000 * 1.000328767 ^ 2555\r<BR>\n" );
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document.write( "use your calculator to get:\r<BR>\n" );
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document.write( "f = 11580.23609\r<BR>\n" );
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