document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1187677>Question 1187677</A>: <I><SPAN STYLE=\"word-break: break-all;\"> An internet shop obtains a loan of 150,000 Php from a lending company based on a simple interest rate of 10.25% payable in two years.\r<BR>\n" );
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document.write( "1.) What is the maturity value of the loan?\r<BR>\n" );
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document.write( "2.) What is the monthly amortization if the shop wishes to pay the loan through monthly installments? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #818713 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=818713\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> simple interest formula is i = p * r * n<BR>\n" );
document.write( "i is the interest<BR>\n" );
document.write( "p is the principle<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( "if you want the future value of the loan, then the formula becomes:\r<BR>\n" );
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document.write( "f = p + p * r * n\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the principal<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( "note that the future value of the loan is the same as the maturity value of the loan.\r<BR>\n" );
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document.write( "the loan is 150,000.<BR>\n" );
document.write( "the interest rate is 10.25% per year.<BR>\n" );
document.write( "the term of the loan is 2 years.\r<BR>\n" );
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document.write( "the maturity value of the loan will be:\r<BR>\n" );
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document.write( "p + p * r * n = 150,000 + 150,000 * .1025 * 2 = 180,750.\r<BR>\n" );
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document.write( "if the loan is to be paid through monthly payments, then the monthly payments will be 180,750 / (2 * 12) = 7,531.25.\r<BR>\n" );
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document.write( "that's the maturity value of the loan divided by the number of months of the loan.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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