document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1120472>Question 1120472</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A business owner spent $32,000 to upgrade her business showroom she paid 15% as a down payment and financed the balance of the purchase with a 24-month fixed installment loan with an APR of 3% determined the business owners total finance charge and monthly payment. \r<BR>\n" );
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document.write( "A total finance charge=1066.24; monthly payment =1177.76<BR>\n" );
document.write( "b. total finance charge=4033.76;monthly payment =1301.41<BR>\n" );
document.write( "c.total finance charge=856.80;monthly payment =1169.03<BR>\n" );
document.write( "d.total finance charge=3917.44;monthly payment =1498.93 </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #736125 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=736125\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the total cost was 32,000<BR>\n" );
document.write( "15% was paid up front = .15 * 32,000 = 4,800.<BR>\n" );
document.write( "amount to be financed is 32,000 - 4,800 = 27,200.\r<BR>\n" );
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document.write( "present value of loan is 27,200<BR>\n" );
document.write( "interest rate of loan is 3% per year / 12 = .25% per month.<BR>\n" );
document.write( "number of months is 24.<BR>\n" );
document.write( "payment is made at the end of each month.<BR>\n" );
document.write( "future value is set to 0.\r<BR>\n" );
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document.write( "make your inputs and select PMT and the calculator gives you what the monthly payment is.\r<BR>\n" );
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document.write( "i used the calculator at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/\" target = \"_blank\">https://arachnoid.com/finance/</a>\r<BR>\n" );
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document.write( "the result looks like this:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2018/072602.jpg\" alt=\"$$$\" >\r<BR>\n" );
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document.write( "you enter the present value as 27,200 because that's money you got from the bank up front.\r<BR>\n" );
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document.write( "enter as 27200 (no commas).\r<BR>\n" );
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document.write( "the calculator will give you the payment as a negative value because that's money you are paying the bank.\r<BR>\n" );
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document.write( "selection c looks like the answer.\r<BR>\n" );
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document.write( "selection c is:  total finance charge = 856.80;  monthly payment = 1169.03.\r<BR>\n" );
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document.write( "monthly payment is 1169.03.\r<BR>\n" );
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document.write( "24 months of payments equals a total layout of 24 * 1169.09 = 28,058.16.\r<BR>\n" );
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document.write( "finance charge is 28,058.16 minus 27,200 = 858.16.\r<BR>\n" );
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document.write( "the monthly payment matches selection c, but the finance charge is a little off, with a difference of 858.16 minus 856.80 = 1.36.\r<BR>\n" );
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document.write( "that can't be explained by rounding, but selection c should be your selection anyway since the payment is correct and nothing else comes close.\r<BR>\n" );
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document.write( "regardless, selection c is the correct answer.\r<BR>\n" );
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document.write( "none of the other selections are even close.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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