document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=759377>Question 759377</A>: <I><SPAN STYLE=\"word-break: break-all;\"> What is the loan payment for a $128,000 home bought with a 20% down payment and the balance financed for 30 years at 9.5% </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #461992 by </B><A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><B>jim_thompson5910(35256)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=461992\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 20% down payment, so 80% is financed\r<BR>\n" );
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document.write( "80% of $128,000 = 0.8*128000 = 102,400 is financed (ie loaned out)\r<BR>\n" );
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document.write( "Turn to the formula P = L[c(1 + c)^n]/[(1 + c)^n - 1]\r<BR>\n" );
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document.write( "P = monthly payment<BR>\n" );
document.write( "L = amount loaned out<BR>\n" );
document.write( "c = monthly interest rate<BR>\n" );
document.write( "n = number of payments\r<BR>\n" );
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document.write( "In this case\r<BR>\n" );
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document.write( "P = unknown<BR>\n" );
document.write( "L = 102400<BR>\n" );
document.write( "c = 0.095/12 = 0.00791666666666667<BR>\n" );
document.write( "n = 30*12 = 360\r<BR>\n" );
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document.write( "Plug all that into the formula to get \r<BR>\n" );
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document.write( "P = L[c(1 + c)^n]/[(1 + c)^n - 1]\r<BR>\n" );
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document.write( "P = 102400[0.00791666666666667(1 + 0.00791666666666667)^360]/[(1 + 0.00791666666666667)^360 - 1]\r<BR>\n" );
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document.write( "P = 861.03470815104\r<BR>\n" );
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document.write( "P = 861.03\r<BR>\n" );
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document.write( "The monthly payment is <font color=\"red\">$861.03</font> </SPAN>\n" );
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