document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1120932>Question 1120932</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Ali buys a used guitar for &#8377; &#8377;24000 if ali pays &#8377;6000 he has to borrow the balance at 12% p.a simple interest for 3 years what are his monthly repayment. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #736639 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=736639\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the guitar costs 24000.\r<BR>\n" );
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document.write( "ali pays 6000 down.\r<BR>\n" );
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document.write( "he owes 18000 at 12% per year simple interest for 3 years.\r<BR>\n" );
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document.write( "simple interest is calculated off the principal, unlike compound interest which is calculated off the remaining balance of the loan.\r<BR>\n" );
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document.write( "the simple interest formula is i = p * r * n\r<BR>\n" );
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document.write( "i is the interest<BR>\n" );
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 this problem, the principal is 18000 and the interest is 12% per year and the number of years is 3.\r<BR>\n" );
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document.write( "12% per year is the percent interest rate.<BR>\n" );
document.write( "the interest rate is the percent / 100 = .12 per year.\r<BR>\n" );
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document.write( "the formula becomes:\r<BR>\n" );
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document.write( "i = 18000 * .12 * 3.\r<BR>\n" );
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document.write( "solve for i to get i = 6480.\r<BR>\n" );
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document.write( "the total that needs to be payed is the principal plus the interest.\r<BR>\n" );
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document.write( "that comes out to be 18000 + 6480 = 24480.\r<BR>\n" );
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document.write( "his monthly payment will be 24480 / (3 * 12) = 24480 / 36 = 680.\r<BR>\n" );
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document.write( "an alternate method would have been to translate everything to monthly time periods up front.\r<BR>\n" );
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document.write( "p = 18000<BR>\n" );
document.write( "r = .12 / 12 = .01 per month.<BR>\n" );
document.write( "n = 12 * 3 = 36 months.\r<BR>\n" );
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document.write( "the formula then becomes i = 18000 * .01 * 36 = 6480.\r<BR>\n" );
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document.write( "the payment is the same at (18000 + 6480) / 36 = 680 per month.<BR>\n" );
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