document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1194506>Question 1194506</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The buyer of a house will pay $7500 cash and $1000 at the end of each 3 months for 12 years. If money<BR>\n" );
document.write( "is worth 9% compounded quarterly, find<BR>\n" );
document.write( "(a) the cash value of the house;<BR>\n" );
document.write( "(b) the remaining liability of the debtor just after he pays his 10th installment of $1000;<BR>\n" );
document.write( "(c) his remaining liability just before he pays the 10th installment. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #827589 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=827589\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the down payment is equal to 7500.<BR>\n" );
document.write( "the payments are 1000 at the end of each quarter (3 months is a quarter) for 12 * 4 = 48 quarters at 9%/4 = 2.25% per quarter.<BR>\n" );
document.write( "the present value of that is equal to 29,169.55.<BR>\n" );
document.write( "add the down payment of 7500 to get a cash value of the house equal to 36,669.55.<BR>\n" );
document.write( "after the 10th payment, the remaining balance on the loan is equal to 25,362.99.<BR>\n" );
document.write( "before the 10th payment, the remaining balance on the loan is equal to 26,362.99.<BR>\n" );
document.write( "you can use the calculator at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/\" target = \"_blank\">https://arachnoid.com/finance/</a> to get these results.<BR>\n" );
document.write( "first analysis is for 48 quarters shown below:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2022/062601.jpg\" ><BR>\n" );
document.write( "second analysis is for 38 quarters shown below:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2022/062602.jpg\" ><BR>\n" );
document.write( "after the 10th payment, there are 38 quarters left to pay.<BR>\n" );
document.write( "the present value of the second analysis is the remaining balance after the 10th payment.<BR>\n" );
document.write( "add 1000 to that to get the remaining balance before the 10th payment.<BR>\n" );
document.write( "i also solved the problem using excel to get the end of quarter display of the remaining balance.<BR>\n" );
document.write( "that is shown below.<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2022/062603.jpg\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2022/062604.jpg\" ><BR>\n" );
document.write( "let me know if you have any questions.<BR>\n" );
document.write( "theo </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );