document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1194150>Question 1194150</A>: <I><SPAN STYLE=\"word-break: break-all;\"> MAT: Topics in Contemporary Math\r<BR>\n" );
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document.write( " Loans\r<BR>\n" );
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document.write( "2) When you were looking for a house, you made the mistake of looking outside your price <BR>\n" );
document.write( "range and completely fell in love with a house that, after your initial down payment, still <BR>\n" );
document.write( "would have cost $375,000. The bank would still be willing to give you the 3.6%, 30-year <BR>\n" );
document.write( "mortgage. What would your monthly mortgage payment be?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #826273 by </B><A HREF=/tutors/aboutme.mpl?userid=math_tutor2020><B>math_tutor2020(3817)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=math_tutor2020><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=826273\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font color=black size=3><BR>\n" );
document.write( "The monthly payment formula is<BR>\n" );
document.write( "P = (L*i)/( 1-(1+i)^(-n) )<BR>\n" );
document.write( "where,<BR>\n" );
document.write( "P = monthly payment<BR>\n" );
document.write( "L = loan amount<BR>\n" );
document.write( "i = interest rate per month, in decimal form<BR>\n" );
document.write( "n = number of months\r<BR>\n" );
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document.write( "For this particular problem:<BR>\n" );
document.write( "L = 375,000 dollars<BR>\n" );
document.write( "i = 0.036/12 = 0.003 exactly<BR>\n" );
document.write( "n = 30*12 = 360 months (equivalent to 30 years)\r<BR>\n" );
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document.write( "Let's find the monthly payment (P) based on those values above.<BR>\n" );
document.write( "P = (L*i)/( 1-(1+i)^(-n) )<BR>\n" );
document.write( "P = (375000*0.003)/( 1-(1+0.003)^(-360) )<BR>\n" );
document.write( "P = 1,704.9200633444<BR>\n" );
document.write( "P = <font color=red>1,704.92 dollars is the monthly payment</font>\r<BR>\n" );
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document.write( "Some free calculators found online to help check your work<BR>\n" );
document.write( "<a  rel=nofollow HREF= \"https://www.bankrate.com/loans/loan-calculator/\">https://www.bankrate.com/loans/loan-calculator/</a><BR>\n" );
document.write( "<a  rel=nofollow HREF= \"https://www.calculator.net/loan-calculator.html\">https://www.calculator.net/loan-calculator.html</a><BR>\n" );
document.write( "</font> </SPAN>\n" );
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