document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1187021>Question 1187021</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 2. You buy a ship for $ 35,000 and pay a down payment of $ 5,000 and promise the balance will be paid in 10 years with 10 payments of the same amount, consisting of the principal plus compound interest of 13 percent of the outstanding amount. How much will each payment be paid? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #817973 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=817973\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> cost is 35000<BR>\n" );
document.write( "down payment is 5000<BR>\n" );
document.write( "loan amount is 3000<BR>\n" );
document.write( "balance will be payments made at the end of each year for 10 years.<BR>\n" );
document.write( "interest rate is 13% compounded annually.\r<BR>\n" );
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document.write( "use the calculator at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/index.html\" target = \"_blank\">https://arachnoid.com/finance/index.html</a>\r<BR>\n" );
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document.write( "inputs are:\r<BR>\n" );
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document.write( "pv = -30000<BR>\n" );
document.write( "fv = 0<BR>\n" );
document.write( "np = 10<BR>\n" );
document.write( "ir - 13%<BR>\n" );
document.write( "payment at end of time period\r<BR>\n" );
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document.write( "inputs look like this:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/110101.jpg\" >\r<BR>\n" );
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document.write( "output looks like this:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/110102.jpg\" >\r<BR>\n" );
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document.write( "solution is that payments of 5528.69 is made at the end of each year for 10 years.\r<BR>\n" );
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document.write( "remaining balance at the end of each year is shown below:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/110105.jpg\" >\r<BR>\n" );
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document.write( "remaining balance from the previous year is multiplied by 1.13 and then the payment of 5528.69 is subtracted to get the remaining balance from the current year.\r<BR>\n" );
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document.write( "example:<BR>\n" );
document.write( "end of year 0 remaining balance = 30,000<BR>\n" );
document.write( "multiply that by 1.13 and subtract 5528.69 from that to get:<BR>\n" );
document.write( "end of year 1 remaining balance = 28,371.31.\r<BR>\n" );
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document.write( "eoy = end of year<BR>\n" );
document.write( "rembal = remaining balance<BR>\n" );
document.write( " </SPAN>\n" );
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