document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1082358>Question 1082358</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Ben bought a new car and took out a loan for $20,000 with a monthly interest of 0.5%. If Ben pays $150 per month, what is the balance after 3 months? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #696440 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=696440\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the loan is 20,000 dollars.<BR>\n" );
document.write( "the monthly interest rate is .5%.<BR>\n" );
document.write( "he pays 150 dollars per month.\r<BR>\n" );
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document.write( "you take the remaining balance at the beginning of each month and multiply it by 1.005 and then subtract the monthly payment of 150 to get the remaining balance\r<BR>\n" );
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document.write( "you will get:\r<BR>\n" );
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document.write( "beginning of month 1               20,000\r\n" );
document.write( "end of month 1                     20,000 * 1.005 - 150 = 19,950\r\n" );
document.write( "end of month 2                     19,950 * 1.005 - 150 = 19,899.75\r\n" );
document.write( "end of month 3                     19,899.75 * 1.005 - 150 = 19,849.24875\r\n" );
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document.write( "you would round this off to 19,849.25 remaining balance of the loan after 3 months.\r<BR>\n" );
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document.write( "the monthly interest rate of .5% is divided by 100 to get a monthly interest rate of .005\r<BR>\n" );
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document.write( "the balance at the end of each month is equal to the balance at the beginning of each month plus .005 * the balance the balance at the beginning of that month.\r<BR>\n" );
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document.write( "if the balance at the beginning of the month is equal to x, then the balance at the end of that month is equal to x + .005 * x which is equal to 1.005 * x.\r<BR>\n" );
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document.write( "therefore, the balance at the end of each month is equal to the balance at the beginning of each month * 1.005.\r<BR>\n" );
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document.write( "the monthly payment is then subtracted from the balance at the end of each month because the payment is assumed to occur at the end of each month.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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