document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1167593>Question 1167593</A>: <I><SPAN STYLE=\"word-break: break-all;\"> In purchasing a house worth 30,000 dollars cash, a man pays 10,000 dollars cash and agreess to make equal payments at the end of each 3 months for 12 years, to discharge all principal amd interest at 8% compounded quarterly. Find his periodic payments. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #792451 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=792451\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> formula to use is:\r<BR>\n" );
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document.write( "ANNUITY FOR A PRESENT AMOUNT WITH END OF TIME PERIOD PAYMENTS\r<BR>\n" );
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document.write( "a = (p*r)/(1-(1/(1+r)^n))\r<BR>\n" );
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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.\r<BR>\n" );
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document.write( "when you compound quarterly, the number of time periods = number of years * 4 and the interest rate per period = the interest rate per year / 4.\r<BR>\n" );
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document.write( "multiply number of years by 12 to get number of quarters.<BR>\n" );
document.write( "divide the yearly interest rate by 4 to get the quarterly interest rate.\r<BR>\n" );
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document.write( "you get:\r<BR>\n" );
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document.write( "p = 20,000<BR>\n" );
document.write( "n = 4 * 12 = 48<BR>\n" );
document.write( "r = .08 / 4 = .02\r<BR>\n" );
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document.write( "and the equation becomes:\r<BR>\n" );
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document.write( "a = (20000*.02)/(1-(1/(1+.02)^48))\r<BR>\n" );
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document.write( "solve for a to get a = 652.0367109\r<BR>\n" );
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document.write( "round to 2 decimal places to get a = 652.04.\r<BR>\n" );
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document.write( "that's the payment made at the end of each quarter for 12 years.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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