document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=849515>Question 849515</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Find the monthly payment for the loan. (Round your answer to the nearest cent.)<BR>\n" );
document.write( "A $110,000 home bought with a 20% down payment and the balance financed for 30 years at 10.5%\r<BR>\n" );
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document.write( "I got $270.11 but i don't think that is right. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #511588 by </B><A HREF=/tutors/aboutme.mpl?userid=swincher4391><B>swincher4391(1107)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=swincher4391><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=swincher4391><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=511588\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> So we make 360 payments and we originally put down 22000 or another way to see this is:\r<BR>\n" );
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document.write( "110000*(1-.20) = 88000\r<BR>\n" );
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document.write( "Our effective rate of interest monthly is i = .105/12 = .00875\r<BR>\n" );
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document.write( "Let's let a = (1-(1+.00875)^-360) /(.00875) in more advanced circles, you'll recognize this as the PV of an annuity.  (1-v^n)/i where v is the discount factor (1/(1+i))\r<BR>\n" );
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document.write( "a = 109.32\r<BR>\n" );
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document.write( "We take 88000/109.32 = 804.98\r<BR>\n" );
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document.write( " </SPAN>\n" );
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