document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1035864>Question 1035864</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The Smith family refinished their basements. They borrowed $22500 at 8.62% compounded monthly to finance the project. They will pay back the loan with monthly payments for the next 12 years.                                                      A)How much are the monthly payments?                                                       B)How much interest will they pay over the 12 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #651875 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=651875\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> you can do this nanually by formula, or you can use a time value of money calculator such as can be found at the following link.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<a  rel=nofollow HREF= \"http://arachnoid.com/finance/index.html\" target = \"_blank\">http://arachnoid.com/finance/index.html</a>\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "i used the calculator and this is what i got.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2016/060502.jpg\" alt=\"$$$\" </>\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your monthly payments are 251.27.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your total interest paid will be 144 * 251.27 - 22500 = 36182.88 - 22500 = 13682.88.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your inputs to the calculator were:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "pv = 22500<BR>\n" );
document.write( "fv = 0<BR>\n" );
document.write( "np = 12 years * 12 months per year = 144 months.<BR>\n" );
document.write( "pmt = 0 or blank because this is what you are calculating for.<BR>\n" );
document.write( "ir = 8.62% per year / 12 months per year = .7183333333% per month.<BR>\n" );
document.write( "payment at end of month.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "you then select to calculate pmt and you get 251.27 per month rounded to 2 decimal places.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your total interest paid is the sum of all the payments minus the original amount as calculated above.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "if you have a Texas Instruments BA II plus or equivalent, you can do these on your calculator rather than using the online calculator.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "you can also do these manually using the annuity from a present amount formula.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "that formula is:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2016/060503.jpg\" alt=\"$$$\" </>\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "in that formula:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "PV = 22500<BR>\n" );
document.write( "R = 8.62 / 100 / 12 = .0071833333....<BR>\n" );
document.write( "n = 12 * 12 = 144\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "follow the formula and you will get PMTPV = 251.2655621.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "this can be rounded to 251.27.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "when you are calculating the total interest, however, use the more detailed answer and then only round at the end.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "this provide a more accurate result for total interest.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your total interest should be 144 * 251.2655621 = 36182.24095.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "this can now be rounded to 36182.24.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "using the rounded payment, the total interest showed as 36182.88.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "there's a slight difference.<BR>\n" );
document.write( "it depends on how your problem is being marked.<BR>\n" );
document.write( "if they're sticklers, they might tell you .88 is wrong.<BR>\n" );
document.write( "if they're not, then you might be ok with either one.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );