document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1102060>Question 1102060</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Jess pays $2510 per quarter over 3 years on a flat rate loan of $24000.\r<BR>\n" );
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document.write( "a)Calculate the total interest paid.<BR>\n" );
document.write( "b)Calculate the annual interest rate. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #717078 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=717078\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> flat rate loan is 24000.<BR>\n" );
document.write( "jesse pays 2510 per quarter over 3 years.<BR>\n" );
document.write( "her total payments are 2510 * 4 * 3 = 30120<BR>\n" );
document.write( "her interest paid is 30120 - 24000 = 6120<BR>\n" );
document.write( "her flat rate interest rate is 6120/3/24000 = .085 = 8.5% per year.\r<BR>\n" );
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document.write( "24000 * .085 * 3 = total interest of 6120.<BR>\n" );
document.write( "total payment due by the end of the loan is 24000 + 6120 = 30120<BR>\n" );
document.write( "this is divided into 12 equal payments of 2510 each quarter.\r<BR>\n" );
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document.write( "the flat rate loan is the same as the simple interest type loan.\r<BR>\n" );
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document.write( "the formula is i = p * r * n\r<BR>\n" );
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document.write( "p is the principal<BR>\n" );
document.write( "r is the interest rate per time period<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "in your problem.\r<BR>\n" );
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document.write( "p = 24000<BR>\n" );
document.write( "r = .085 / 4 = .02125 per quarter.<BR>\n" );
document.write( "n = 3 * 4 = 12 quarters.\r<BR>\n" );
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document.write( "i = p * r * n becomes i = 24000 * .02125 * 12 = 6120\r<BR>\n" );
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document.write( "that's the total interest due on a principal of 24000.\r<BR>\n" );
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document.write( "add that to the principal and the total amount due by the end of the loan is 24000 + 6120 = 30120.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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