document.write( "Question 1066264: How much would it cost to finance $400.00 over 20 years @ 3.25% interest?
\n" ); document.write( "Thanks! \n" ); document.write( "
Algebra.Com's Answer #681448 by swincher4391(1107)\"\" \"About 
You can put this solution on YOUR website!
Your question is incomplete, but I will assume that you intend to make monthly payments and that the 3.25% is compounded monthly. If either of these assumptions are incorrect, shoot me an email @ swincher4391@yahoo.com.\r
\n" ); document.write( "\n" ); document.write( "Anyway, to answer your question:\r
\n" ); document.write( "\n" ); document.write( "We need to solve for our monthly payment. Let's call it P.\r
\n" ); document.write( "\n" ); document.write( "So, we have that A = P*(1-(1+r/n)^(-nt))/r, where A is our financing amount, P is our payment, r is our rate, n is the number of times compounded in a year, and t is the number of years we are financing over. Notice we have A = 400, r = .0325, n = 12, and t = 20.\r
\n" ); document.write( "\n" ); document.write( "So \"400+=++12%2AP+%2A+%281-%281%2B.0325%2F12%29%5E%28-12%2A20%29%29%2F.0325\"\r
\n" ); document.write( "\n" ); document.write( "Simplifying a bit we get that \"400+=+176.306P\" So P ~ $2.27 a month.
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