document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1172840>Question 1172840</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Jennifer Kaufman bought a used Toyota Prius for $17,500. She made a $4,500 down payment and is financing the balance at a particular bank over a 3 year period at 12% interest. As her banker, calculate what equal monthly payments (in $) will be required by Jennifer to amortize the car loan. (Round your answer to the nearest cent.)\r<BR>\n" );
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document.write( "I subtracted $17,500 to $4,500 and got $13,000.\r<BR>\n" );
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document.write( "I then did 13,000 x .001/1-(1+.001)^36 = -354.83, which was wrong. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #797969 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=797969\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> You got a negative number, so that is the first hint something is incorrect. rate per month is 0.01 or 1%, 12%/12. <BR>\n" );
document.write( "a divided by (1+r)^n-1/r(1+r)^n<BR>\n" );
document.write( "n=36 payments and r is int. rate/12, for 12 payments per year.<BR>\n" );
document.write( "a=$13000<BR>\n" );
document.write( "the denominator is (1.01^36-1)/0.01(1.01)^36=0.431/0.143=30.107.<BR>\n" );
document.write( "13000/30.107=$431.79.  Note: round at the end; carry all intermediate calculations to the final one. </SPAN>\n" );
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