document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1060984>Question 1060984</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 1. a credit union gives me a loan of $40000 at a monthly rate of 1.25% on the reducing balance for a period of 2 years.  How much will be my monthly payments?<BR>\n" );
document.write( "2. Create an amortization schedule for the life of the loan </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #675842 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=675842\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> i get 1939.465922 per month as the amount you have to pay.\r<BR>\n" );
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document.write( "you are talking 1.25% per month.<BR>\n" );
document.write( "that's equivalent to an annual percentage rate of 15% per year compounded monthly.\r<BR>\n" );
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document.write( "i used my financial calculator to get the results.\r<BR>\n" );
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document.write( "then i used an online amortization calculator to show you the month by month results.\r<BR>\n" );
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document.write( "those results are shown below:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2016/121001.jpg\" alt=\"$$$\" </>\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2016/121002.jpg\" alt=\"$$$\" </>\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2016/121003.jpg\" alt=\"$$$\" </>\r<BR>\n" );
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document.write( "that calculator can be found at this link.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"http://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx\" target = \"_blank\">http://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx</a>\r<BR>\n" );
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document.write( "loan payments at the end of each month are assumed.\r<BR>\n" );
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document.write( "you start with 40,000.<BR>\n" );
document.write( "add 1.25% times that to it to get 40500 and then subtract the month end payment of 1939.47 to get a remaining balance of 38560.53.<BR>\n" );
document.write( "add 1.25% times that to it to get 39042.54 and then subtract the month end payment of 1939.47 to get a remaining balance of 37103.07.\r<BR>\n" );
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document.write( "check the first 2 months of the payments in the picture and you'll see that they agree.\r<BR>\n" );
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document.write( "any questions, let me know.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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