document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=923616>Question 923616</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A car worth $12000, is purchased at the beginning of 2013, with a deposit of $2000. The remainder is borrowed from the bank, with interest compounding annually, and paid off in monthly instalments of $349.92, until the end of 2015.<BR>\n" );
document.write( "What was the annual compound interest rate from the bank?\r<BR>\n" );
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document.write( "I got 1.71%.<BR>\n" );
document.write( "Can anyone please help me work out the solution for this question?? :( <BR>\n" );
document.write( "All your answers will be appreciated<BR>\n" );
document.write( "thank you </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #560161 by </B><A HREF=/tutors/aboutme.mpl?userid=josmiceli><B>josmiceli(19441)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=josmiceli><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=josmiceli><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=560161\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The formula is:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+P%2A%28+1+%2B+r+%29%5Et+ ALIGN=MIDDLE  ALT=\"+A+=+P%2A%28+1+%2B+r+%29%5Et+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "for annually compounded interest loans <BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+t+ ALIGN=MIDDLE  ALT=\"+t+\"   DISABLED_style= \"max-width:90%; height:auto;\" > is the years to pay off the loan<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+r+ ALIGN=MIDDLE  ALT=\"+r+\"   DISABLED_style= \"max-width:90%; height:auto;\" > = the interest rate<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+P+ ALIGN=MIDDLE  ALT=\"+P+\"   DISABLED_style= \"max-width:90%; height:auto;\" > = the principle of the loan<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+ ALIGN=MIDDLE  ALT=\"+A+\"   DISABLED_style= \"max-width:90%; height:auto;\" > = what you end up paying\r<BR>\n" );
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document.write( "-------------------------------<BR>\n" );
document.write( "Take $2,000 off the principle, so the loan starts with<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+12000+-+2000+=+10000+ ALIGN=MIDDLE  ALT=\"+12000+-+2000+=+10000+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+P+=+10000+ ALIGN=MIDDLE  ALT=\"+P+=+10000+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "------------------<BR>\n" );
document.write( "There are <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+36+ ALIGN=MIDDLE  ALT=\"+36+\"   DISABLED_style= \"max-width:90%; height:auto;\" > in the <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+3+ ALIGN=MIDDLE  ALT=\"+3+\"   DISABLED_style= \"max-width:90%; height:auto;\" > years from the beginning of<BR>\n" );
document.write( "2013 to the end of2015 <BR>\n" );
document.write( "The amount paid to the bank in those <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=3 ALIGN=MIDDLE  ALT=\"3\"   DISABLED_style= \"max-width:90%; height:auto;\" > years is:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+36%2A349.92+=+12597.12+ ALIGN=MIDDLE  ALT=\"+36%2A349.92+=+12597.12+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+12597.12+ ALIGN=MIDDLE  ALT=\"+A+=+12597.12+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "-------------------<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+12597.12+=+10000%2A%28+1+%2B+r+%29%5E3+ ALIGN=MIDDLE  ALT=\"+12597.12+=+10000%2A%28+1+%2B+r+%29%5E3+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+%28+1+%2B+r+%29%5E3+=+1.259712+ ALIGN=MIDDLE  ALT=\"+%28+1+%2B+r+%29%5E3+=+1.259712+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+3%2Alog%28+1+%2B+r+%29+=+log%28+1.259712+%29+ ALIGN=MIDDLE  ALT=\"+3%2Alog%28+1+%2B+r+%29+=+log%28+1.259712+%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+3%2Alog%28+1+%2B+r+%29+=+.1002713+ ALIGN=MIDDLE  ALT=\"+3%2Alog%28+1+%2B+r+%29+=+.1002713+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+log%28+1+%2B+r+%29+=+.033424+ ALIGN=MIDDLE  ALT=\"+log%28+1+%2B+r+%29+=+.033424+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+10%5E%28.033424+%29+=+1+%2B+r+ ALIGN=MIDDLE  ALT=\"+10%5E%28.033424+%29+=+1+%2B+r+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+1+%2B+r+=+1.080001+ ALIGN=MIDDLE  ALT=\"+1+%2B+r+=+1.080001+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+r+=+.08+ ALIGN=MIDDLE  ALT=\"+r+=+.08+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "The compound interest rate is 8%<BR>\n" );
document.write( "Check my math, calculator work, and maybe<BR>\n" );
document.write( "get a 2nd opinion, too\r<BR>\n" );
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document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );