Algebra.Com's Answer #842564 by ikleyn(52786)![\"\"](\"/images/stars/stars-13.gif\")  
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document.write( "You purchased a refrigerator at Sears for $2,500 (no sales tax added),
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document.write( "and you decide to pay for it in 4 years. Sears' interest rate is 10%.
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document.write( "What is the monthly payment that you need to pay?
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document.write( "Use the formula for the monthly payment for a loan\r\n" );
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document.write( " M =  \r\n" );
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document.write( "where P is the loan amount; r =  is the nominal interest rate per month;\r\n" );
document.write( "n is the number of payments (same as the number of months in 4 years); M is the monthly paymemt.\r\n" );
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document.write( "In this problem P = $2500; r = ; n = 4*12 = 48.\r\n" );
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document.write( "Substitute these values into the formula and get for monthly payment\r\n" );
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document.write( " M =  = $63.41 (rounded).\r\n" );
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document.write( "Thus, the monthly payment is $61.41. ANSWER\r\n" );
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document.write( "In total, you will have to repay 4*12*61.41 = 2,947.68 dollars in 4 years.\r\n" );
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document.write( "The difference $2,947.68 - $2,500 = $447.68 = $370,681.60 is the interest you pay for this loan.\r\n" );
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document.write( "Solved.\r
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