document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1055222>Question 1055222</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A customer needs to borrow $7500 to purchase a used car. The car dealer arranges with a finance company to lend the customer the money at 2.9% compounded monthly for three years. What will the customer's monthly payment be?\r<BR>\n" );
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document.write( "I have: \r<BR>\n" );
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document.write( "PV= 7500, i= 2.9% = 0.029 / 12months = 0.002 416 67, n = 12months x 3years = 36, R= ? (monthly payment)\r<BR>\n" );
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document.write( "PV=R [1-(1 + i)^-n <BR>\n" );
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document.write( "               i \r<BR>\n" );
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document.write( "7500 = R [1 - (1.002 416 67)^-36             {Get rid of divisor (7500 x 0.00241667)= 18.125}<BR>\n" );
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document.write( "                  0.002 416 67\r<BR>\n" );
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document.write( "18.125 = R[1 - 0.91677]\r<BR>\n" );
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document.write( "18.125 = R[0.8323]\r<BR>\n" );
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document.write( "R= 21.777 \r<BR>\n" );
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document.write( "Now this not right. I reckon it's off by a decimal place as the TVM function on my TI 83 plus calculator makes out the answer as R = 217.78 \r<BR>\n" );
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document.write( "Where am I going wrong? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #670465 by </B><A HREF=/tutors/aboutme.mpl?userid=Fombitz><B>Fombitz(32388)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Fombitz><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=Fombitz><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=670465\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> I'm not sure of the formula you are using.<BR>\n" );
document.write( "Here is the standard monthly payment formula.<BR>\n" );
document.write( "It looks like you're missing a term.<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=M=%28Pr%281%2Br%29%5En%29%2F%28%281%2Br%29%5En-1%29 ALIGN=MIDDLE  ALT=\"M=%28Pr%281%2Br%29%5En%29%2F%28%281%2Br%29%5En-1%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=7500 ALIGN=MIDDLE  ALT=\"P=7500\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=r=0.029%2F12 ALIGN=MIDDLE  ALT=\"r=0.029%2F12\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=n=36 ALIGN=MIDDLE  ALT=\"n=36\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
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document.write( "Yes, that's the answer you'll get with this formula and verified with EXCEL's PMT function.<BR>\n" );
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