document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1149652>Question 1149652</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Victoria graduates college with 38000 in student loans. if the bank charges 3.6% interest, compounded monthly, and the plan is to pay off the loans in 6 years, how big are the Victoria's payments?  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #770992 by </B><A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><B>jim_thompson5910(35256)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=770992\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font face=\"times\" color=\"black\" size=\"3\"><BR>\n" );
document.write( "L = loan amount = 38000<BR>\n" );
document.write( "r = annual interest rate in decimal form = 0.036<BR>\n" );
document.write( "c = interest rate per period in decimal form  = r/12 = 0.036/12 = 0.003<BR>\n" );
document.write( "y = number of years = 6<BR>\n" );
document.write( "n = number of periods = number of months = y*12 = 6*12 = 72\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "P = monthly payment<BR>\n" );
document.write( "P = L[c(1 + c)^n]/[(1 + c)^n - 1] <font color=blue>see note below</font><BR>\n" );
document.write( "P = 38000[0.003(1 + 0.003)^72]/[(1 + 0.003)^72 - 1] <BR>\n" );
document.write( "P = 38000[0.003(1.003)^72]/[(1.003)^72 - 1]<BR>\n" );
document.write( "P = 38000[0.003(1.24070112913527)]/[1.24070112913527 - 1]<BR>\n" );
document.write( "P = 38000(0.00372210338740582)/(1.24070112913527 - 1)<BR>\n" );
document.write( "P = 38000(0.00372210338740582)/(0.240701129135273)<BR>\n" );
document.write( "P = 38000(0.0154635892269288)<BR>\n" );
document.write( "P = 587.616390623296<BR>\n" );
document.write( "P = <font color=red>587.62</font>\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Answer: Victoria's monthly payment is <font color=red size=4>587.62 dollars</font>\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "------------------------\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<font color=blue>note:</font><BR>\n" );
document.write( "I'm using the formula mentioned on this page<BR>\n" );
document.write( "<a  rel=nofollow HREF=\"https://www.mtgprofessor.com/formulas.htm\">https://www.mtgprofessor.com/formulas.htm</a><BR>\n" );
document.write( "Though the page talks about mortgage payments, the idea applies to any loan in which you pay the balance off monthly, and compound interest is involved (compounding monthly).\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Another handy reference is this monthly payment calculator<BR>\n" );
document.write( "<a  rel=nofollow HREF=\"https://www.calculator.net/payment-calculator.html\">https://www.calculator.net/payment-calculator.html</a><BR>\n" );
document.write( "which not only computes the monthly payment, but it also shows the monthly amortization schedule. This schedule is a table showing what your interest payment, principal payment and balance will be for any given month.<BR>\n" );
document.write( "</font> </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );