document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1144414>Question 1144414</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Sara borrowed funds to buy furniture for her business. Her business paying $200 at the end of each month for four years. The bank charges interest on the loan at 8% compounded monthly.<BR>\n" );
document.write( "a.	What was the cash price of the furniture?<BR>\n" );
document.write( "b.	How much is the cost of financing?<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 #765534 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=765534\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> she pays 200 at the end of each month for 4 years a 8% interest rate per year compounded monthly.\r<BR>\n" );
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document.write( "using the onlline finanancial calculator found at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/\" target = \"_blank\">https://arachnoid.com/finance/</a>, you would make the following entries.\r<BR>\n" );
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document.write( "present value = 0<BR>\n" );
document.write( "future value = 0<BR>\n" );
document.write( "number of time periods = 4 years * 12 months per year = 48 months,<BR>\n" );
document.write( "interest rate per time  period = 8% per year / 12 = .66666667% per month.<BR>\n" );
document.write( "payment per month is equal to -200 (negative because it's money going out).<BR>\n" );
document.write( "payments are made at the end of each time period.<BR>\n" );
document.write( "you would then click on PV and the calculator will tell you that the value of the furniture that you bought on time is equal to 8,192.38. <BR>\n" );
document.write( "to find out the financing charge, you would multiply the monthly payments by 48 to get 9600.<BR>\n" );
document.write( "you would subtract the present value of the loan to get the interest charge.<BR>\n" );
document.write( "that would be equal to 9600 - 8192.38 = 1407.62.\r<BR>\n" );
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document.write( "here's a display of the results from using the online calculator.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2019/083101.jpg\" alt=\"$$$\" >\r<BR>\n" );
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