document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1075894>Question 1075894</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A loan of $2000 has a monthly payment of $70.65.  The loan is for 3 years.  Determine interest rate.  Non-homework question.  Thanks. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #690575 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=690575\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> present value of the loan is 2000<BR>\n" );
document.write( "monthly payment is 70.65<BR>\n" );
document.write( "term of the loan is 3 years.<BR>\n" );
document.write( "what is the interest rate?\r<BR>\n" );
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document.write( "you can solve this throuogh the use of the following financial calculator.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"https://arachnoid.com/finance/\" target = \"_blank\">https://arachnoid.com/finance/</a>\r<BR>\n" );
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document.write( "your time periods will be in months.\r<BR>\n" );
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document.write( "3 years * 12 = 36 months.<BR>\n" );
document.write( "your answer will be an interest rate percent per month.<BR>\n" );
document.write( "you will need to multiply that by 12 to get the annual interest rate.\r<BR>\n" );
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document.write( "your inputs will look like this:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2017/040901.jpg\" alt=\"$$$\" </>\r<BR>\n" );
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document.write( "your output will look like this:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2017/040902.jpg\" alt=\"$$$\" </>\r<BR>\n" );
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document.write( "if the present value is positive, then the payment must be negative and vice versa.\r<BR>\n" );
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document.write( "this is required to make the calculator work properly.\r<BR>\n" );
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document.write( "it has to do with cash flow concepts.\r<BR>\n" );
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document.write( "if it is a loan, then pv is positive and payment is negative.<BR>\n" );
document.write( "this is because you get 2000 up front coming to you and you shell out 70.65 each month to pay off the loan.\r<BR>\n" );
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document.write( "if you invest the money up front, then pv is negative and payments are positive because you shell out the money first and get periodic payments from that investment later.\r<BR>\n" );
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document.write( "negative means money out.<BR>\n" );
document.write( "positive means money in.\r<BR>\n" );
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document.write( "your solution is that the monthly interest rate percent is 1.361646.\r<BR>\n" );
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document.write( "multiply that by 12 and the annual interest rate percent is 16.339752.\r<BR>\n" );
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document.write( "i used excel to give you a month by month breakdown of how the loan is payed off using the monthly interest rate of 1.361646 percent.\r<BR>\n" );
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document.write( "those calculations are displayed below:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2017/040903.jpg\" alt=\"$$$\" </>\r<BR>\n" );
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document.write( " </SPAN>\n" );
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