document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1002224>Question 1002224</A>: <I><SPAN STYLE=\"word-break: break-all;\"> im not sure what ategory this falls under but please help with step by step!!<BR>\n" );
document.write( "caroline gets a small business loan for $75,000 to start her hair salon. she will repay the loan with equal monthly payments over 5 years at 8.4% per year compounded monthly.<BR>\n" );
document.write( "a) what is carolines monthly loan payment?<BR>\n" );
document.write( "b) what is the total amount caroline repays ?<BR>\n" );
document.write( "c) how much of the amount repaid is interest?<BR>\n" );
document.write( "PLEASE ANSWER I WILL RECOMEND TO EVERYONE!! </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #619231 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=619231\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> i moved it to algebra in finance.<BR>\n" );
document.write( "that appears to be a better catgegory for it.\r<BR>\n" );
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document.write( "the amount of the loan is 75,000.<BR>\n" );
document.write( "the annual percentage rate (apr) is 8.4%<BR>\n" );
document.write( "the number of years of the loan is 5.\r<BR>\n" );
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document.write( "the formula for payment of a present value is:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+PMT%28PV%29+=+%28PV+%2F+%28%28%28%281+-+%281+%2F+%28%281%2Br%29%5En%29%29%29%29%2Fr%29%29%29+ ALIGN=MIDDLE   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "pmt is the payment per time period.<BR>\n" );
document.write( "pv is the present value which is also called the loan amount.<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "in your problem.....\r<BR>\n" );
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document.write( "pmt is what you want to find.<BR>\n" );
document.write( "pv is equal to 75,000 dollars.<BR>\n" );
document.write( "r is equal to 8.4 / 100 / 12 = .007<BR>\n" );
document.write( "n is equal to 5 * 12 = 60\r<BR>\n" );
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document.write( "the time period is in months so you have to translate years into months by multiplying the number of years by 12 to get months.<BR>\n" );
document.write( "5 * 12 = 60 as shown above.\r<BR>\n" );
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document.write( "you are given the interest rate percent per year.<BR>\n" );
document.write( "you have to divide that by 100 to get the interest rate per year.<BR>\n" );
document.write( "you then divide the interest rate per year by 12 to get the interest rate per month.<BR>\n" );
document.write( "8.4 / 100 / 12 = .007 as shown above.\r<BR>\n" );
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document.write( "the rest is just replacing the variables in the formula with their respective values.\r<BR>\n" );
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document.write( "the following worksheet shows you the calculations required and the result.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2015/110902.jpg\" alt=\"$$$\" </>\r<BR>\n" );
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document.write( "you can also use an online calculator to get the same result.\r<BR>\n" );
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document.write( "one such calculator can be found here.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"http://arachnoid.com/lutusp/finance.html\" target = \"_blank\">http://arachnoid.com/lutusp/finance.html</a>\r<BR>\n" );
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document.write( "with this online calculator, you enter the percent per time period, not the rate.\r<BR>\n" );
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document.write( "you would enter .7 rather than .007\r<BR>\n" );
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document.write( "you would make all necessary entries and then you would click on pmt and it will tell you what the payment per time period is.\r<BR>\n" );
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document.write( "you also want to make sure that it is set to end of time period payments because that is the default.\r<BR>\n" );
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document.write( "you will get what you see below.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2015/110903.jpg\" alt=\"$$$\" </>\r<BR>\n" );
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document.write( "answers to your questions are shown below:\r<BR>\n" );
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document.write( "a) what is carolines monthly loan payment?\r<BR>\n" );
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document.write( "her monthly payment is 1535.13\r<BR>\n" );
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document.write( "b) what is the total amount caroline repays ?\r<BR>\n" );
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document.write( "the total amount that she repays is the monthly payment * 60 = 1535.13 * 60 = 92,107.8\r<BR>\n" );
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document.write( "c) how much of the amount repaid is interest?\r<BR>\n" );
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document.write( "the interest she paid is equal to the total amount she paid minus what she owed.\r<BR>\n" );
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document.write( "that is equal to 92,107.8 - 75,000 = 17,107.8\r<BR>\n" );
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document.write( " </SPAN>\n" );
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