document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1133164>Question 1133164</A>: <I><SPAN STYLE=\"word-break: break-all;\"> help I am stuck on this question \r<BR>\n" );
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document.write( "A financial institution offers personal loans with interest rates that vary from 8.25% to 12.5% compounded monthly, depending on a person's credit rating. Two people, one with the best credit rating and the other with the worst, take out loans of $12000 to be repaid in 30 monthly payments. How much interest does the person with the poor credit rating pay?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #750341 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=750341\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> formula Payment=PV*r/(1-(1+r))^-n, r rate, and n number compoundings<BR>\n" );
document.write( "monthly it is PV(r/12)/(1-(1+r/12)^-nt), nt will be 30<BR>\n" );
document.write( "=12000(0.125/12)/(1-(1+(.125/12)^-30))<BR>\n" );
document.write( "=125/(1-(1.010416667)^-30) do without rounding until the end<BR>\n" );
document.write( "$467.81 is the monthly payment<BR>\n" );
document.write( "30 of them is $14034.30<BR>\n" );
document.write( "the loan was $12000<BR>\n" );
document.write( "The interest paid is the difference of $2034.30 </SPAN>\n" );
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