document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1122561>Question 1122561</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Sam is getting ready for a big date when he realizes that he has no money.  His roommate, Bill, also has no money, but he has a credit card.  Knowing that nobody will let Sam use Bill’s credit card, Sam asks Bill to pull out a cash advance for $120.00.  Bill agrees under the condition that Sam is responsible for all interest that accrues on the cash advance which is a 30% interest rate, compounded monthly. 5 full years go by before the $120 cash advance is repaid.  How much should Bill ask Sam to pay in interest for the cash advance?  </SPAN>\n" );
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document.write( "The final amount A on a loan of P with a periodic interest rate r for n periods is<br><BR>\n" );
document.write( "A = P(1+r)^n<br><BR>\n" );
document.write( "The annual interest rate is 30%, so the periodic (monthly) interest rate is 2.5%, or 0.025.  5 years with a period of 1 month means 60 periods.<br><BR>\n" );
document.write( "Plug in the numbers....<BR>\n" );
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