document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1196198>Question 1196198</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Please help with the homework:<BR>\n" );
document.write( "Peter get employed on the first of January 2020, suppose Peter purchase an apartment of R180000 with a deposit of R45000. Peter secure a mortgage bond with a bank for the balance at 18% interest per annum, compounded monthly with a term Of 20 years. What will be the monthly payment?<BR>\n" );
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document.write( "Peter made a down payment of R45000<BR>\n" );
document.write( "We'll subtract this from the cost of the apartment.\r<BR>\n" );
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document.write( "R180000 - R45000 = R135000\r<BR>\n" );
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document.write( "It might be helpful to think of that above calculation as<BR>\n" );
document.write( "180 - 45 = 135<BR>\n" );
document.write( "then just stick \"thousand\" on to each value\r<BR>\n" );
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document.write( "The value R135000 represents the amount Peter borrows.\r<BR>\n" );
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document.write( "L = 135,000 = loan amount<BR>\n" );
document.write( "P = unknown monthly payment<BR>\n" );
document.write( "r = annual interest rate in decimal form = 0.18<BR>\n" );
document.write( "i = monthly interest rate in decimal form = r/12 = 0.18/12 = 0.015 which is exact<BR>\n" );
document.write( "n = number of months = 20*12 = 240 (equivalent to 20 years)\r<BR>\n" );
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document.write( "Let's calculate the value of P<BR>\n" );
document.write( "P = (L*i)/(1 - (1+i)^(-n))<BR>\n" );
document.write( "P = (135,000*0.015)/(1 - (1+0.015)^(-240))<BR>\n" );
document.write( "P = 2,083.47055654027<BR>\n" );
document.write( "P = 2,083.47\r<BR>\n" );
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document.write( "Answer: The monthly payment is <font color=red>R2083.47</font><BR>\n" );
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