document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1162199>Question 1162199</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Crystal is taking out an amortized loan for​ $16,000 to remodel parts of her home. Find the monthly payment if the loan is taken at​ 4% interest compounded monthly and she has agreed to pay it back over 8 years.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #785962 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=785962\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> present value = 16,000<BR>\n" );
document.write( "interest rate is 4% per year compounded monthly.<BR>\n" );
document.write( "term of loan is 8 years.<BR>\n" );
document.write( "formula to use is:<BR>\n" );
document.write( "ANNUITY FOR A PRESENT AMOUNT WITH END OF TIME PERIOD PAYMENTS<BR>\n" );
document.write( "a = (p*r)/(1-(1/(1+r)^n))<BR>\n" );
document.write( "a is the annuity.<BR>\n" );
document.write( "p is the present amount.<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "n is the number of time periods.<BR>\n" );
document.write( "p = 16000<BR>\n" );
document.write( "r = 4/1200<BR>\n" );
document.write( "n = 8*12<BR>\n" );
document.write( "formula becomes:<BR>\n" );
document.write( "a = (16000*12/100)/(1-(1/(1+4/1200)^(8*12))) = 195.0284048<BR>\n" );
document.write( "you can use a calculator as well.<BR>\n" );
document.write( "i used the TI-BA-II<BR>\n" );
document.write( "inputs were:<BR>\n" );
document.write( "present value = 16000<BR>\n" );
document.write( "interest rate per month = (4/12)%<BR>\n" );
document.write( "number of months = 8*12<BR>\n" );
document.write( "future value = 0<BR>\n" );
document.write( "payments are made at the end of each time period.<BR>\n" );
document.write( "click on payment to get payment at the end of each month = the same as with the formula.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );