document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1037868>Question 1037868</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Sylvia buys a small farm (a quarter section of 160 acres) for $225 000.00.  She makes a down payment of $25 000.00 and uses a 20-year mortgage to pay the remainder.  Because it is farmland, she opted for a yearly payment instead of monthly payments.  Sylvia’s payments are $16 931.89 each year.   <BR>\n" );
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document.write( "a. Calculate how much Sylvia will pay for the farm with yearly payments.\r<BR>\n" );
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document.write( "b. How much will Sylvia pay in interest during the 20 years?<BR>\n" );
document.write( "Hint:  Calculate the difference between her total cost and the initial cost of the farm.<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 #652607 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=652607\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> she bought the farm for 225,000<BR>\n" );
document.write( "she made a down payment of 25,000.<BR>\n" );
document.write( "the mortgage was therefore 200,000.\r<BR>\n" );
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document.write( "she is making yearly payments of 16,931.89\r<BR>\n" );
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document.write( "20 of those payments will be equal to 338,637.8\r<BR>\n" );
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document.write( "that's the total of what she will pay over 20 years.\r<BR>\n" );
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document.write( "since the mortgage was 200,000, her interest payments are 338,637.8 minus 200,000 which is equal to 138,637.8\r<BR>\n" );
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document.write( "she will have paid 138,637.8 in interest over the 20 years.<BR>\n" );
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