document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=925926>Question 925926</A>: <I><SPAN STYLE=\"word-break: break-all;\"> What would your monthly payment  be on a $15,000 on a 5 year  2.9% car loan? Show all work<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 #561942 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=561942\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the car loan is 15,000 for 5 years at 2.9% interest.<BR>\n" );
document.write( "2.9% is the annual percentage rate.<BR>\n" );
document.write( "divide that by 12 and you get a monthly percentage rate of 2.9 / 12.<BR>\n" );
document.write( "stick these numbers in your financial calculator.<BR>\n" );
document.write( "pv = -15,000<BR>\n" );
document.write( "n = 5*12 = 60 months<BR>\n" );
document.write( "i = 2.9/12 = .2416666667 percent<BR>\n" );
document.write( "fv = 0<BR>\n" );
document.write( "the calculator will find the monthly payment for you.<BR>\n" );
document.write( "it will tell you that the monthly payment is equal to 268.8643014<BR>\n" );
document.write( "round this up to 268.87 because the bank will want you to pay a little over rather than a little under.<BR>\n" );
document.write( "that should be your answer.\r<BR>\n" );
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document.write( "you can also do this by formula manually.\r<BR>\n" );
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document.write( "the following link gives you the formula and also has an online calculator that you can use.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"http://www.financeformulas.net/Annuity_Payment_Formula.html\" target = \"_blank\">http://www.financeformulas.net/Annuity_Payment_Formula.html</a>\r<BR>\n" );
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document.write( "when you use the formula, the interest rate will have to be:<BR>\n" );
document.write( "2.9/12/100 = .0024166667\r<BR>\n" );
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document.write( "the formula expects rate.<BR>\n" );
document.write( "the calculator expects percent.<BR>\n" );
document.write( "rate = percent divided by 100.\r<BR>\n" );
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document.write( "when you use the calculator, the interest percent will have to be:<BR>\n" );
document.write( "2.9/12 = .24166667\r<BR>\n" );
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document.write( "the calculator expects percent while the formula expects rate.<BR>\n" );
document.write( "rate = percent divided by 100.<BR>\n" );
document.write( "percent = rate multiplied by 100.\r<BR>\n" );
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document.write( "you should get what i got which is a payment of 268.87 or something very close to that.\r<BR>\n" );
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document.write( "n is going to be 60 whether you use the formula or the calculator.<BR>\n" );
document.write( "pv is going to be 15000 whether you use the formula or the calculator.\r<BR>\n" );
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document.write( "the formula should get you right on if you didn't round the monthly rate.\r<BR>\n" );
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document.write( "the calculator rounds your input to 5 decimal places so the answer will be a little different.\r<BR>\n" );
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document.write( "the calculator should tell you that the payment is 268.89.\r<BR>\n" );
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document.write( "that's pretty close to 268.87 with the difference being caused by rounding.\r<BR>\n" );
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