document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1201662>Question 1201662</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Could you please help me with this problem?\r<BR>\n" );
document.write( "\n" );
document.write( "Mr.Cruz wants to borrow $40,000 from the bank to buy the new Ford F-150 Lightning.<BR>\n" );
document.write( "If the bank can offer him a five year loan for 2.5% annual interest compounded monthly,then what will his monthly payments be? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #836132 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=836132\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font color=black size=3><BR>\n" );
document.write( "Answer: <font color=red>$709.89</font>\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Work Shown:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "The formula to use 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 = monthly interest rate in decimal form<BR>\n" );
document.write( "n = number of months\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "In this case<BR>\n" );
document.write( "L = 40,000<BR>\n" );
document.write( "i = 0.025/12 =  0.00208333 approximately<BR>\n" );
document.write( "n = 5*12 = 60 months\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Then,<BR>\n" );
document.write( "P = (L*i)/( 1-(1+i)^(-n) )<BR>\n" );
document.write( "P = (40000*0.00208333)/( 1-(1+0.00208333)^(-60) )<BR>\n" );
document.write( "P = 709.894393670184<BR>\n" );
document.write( "P = <font color=red>709.89</font>\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "The answer can be confirmed with a calculator such as this one<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" );
document.write( "</TD></TR></TABLE>\n" );