document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1205957>Question 1205957</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You purchased a laptop computer worth PhP 28,998 by a 30% down<BR>\n" );
document.write( "payment and agreed to repay the balance in 18 equal monthly payments.<BR>\n" );
document.write( "There is a 0% simple interest rate on this balance.<BR>\n" );
document.write( "Find the finance charge<BR>\n" );
document.write( "Find the amount of monthly payments<BR>\n" );
document.write( "Estimate the APR </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #843080 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=843080\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> price of the computer is 28,998.<BR>\n" );
document.write( "30% down payment is .3 * 28,998 = 8699.4.<BR>\n" );
document.write( "amount to be financed is 28998 minus 8699.4 = 20298.6<BR>\n" );
document.write( "if there is 0% finance charge on this loan, then the finance charge is 0.<BR>\n" );
document.write( "the monthly payments will be 20298.6 / 18 = 1127.7.\r<BR>\n" );
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document.write( "not sure if you meant 0% simple interest rate.<BR>\n" );
document.write( "please check you problem again to see what the interest rate needs to be.\r<BR>\n" );
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document.write( "the formula for simple interest is i = p * r * n<BR>\n" );
document.write( "i is the interest.<BR>\n" );
document.write( "p is the principal<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "for example, assume the simple interest rate per year is 12%.<BR>\n" );
document.write( "that would be .12 interest rate per year.<BR>\n" );
document.write( "divide that by 12 to get .01 interest rate per month.<BR>\n" );
document.write( "the amount to be financed is the same at 28998 minus .3 * 28998 = 20298.6<BR>\n" );
document.write( "the formula becomes i = 20298.6 * .01 * 18 = 3653.748.\r<BR>\n" );
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document.write( "the finance charge would be 3653.75 rounded to the nearest penny.<BR>\n" );
document.write( "that is added to the principal to get 20298.6 + 3653.75 = 23952.35 that is owed.<BR>\n" );
document.write( "divide that by 18 to get 23952.35 / 18 = 1330.686111 per month.<BR>\n" );
document.write( "round that to 1330.69 and that's the monthly payment.\r<BR>\n" );
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document.write( "you would pay 1330.69 per month for 18 month.<BR>\n" );
document.write( "the total payments would be 23952.42.<BR>\n" );
document.write( "subtract that from 23952.35 that was owed and the difference is 7 cents that you over paid.<BR>\n" );
document.write( "you might get the bank to pay you that back so the books would balance.<BR>\n" );
document.write( "not sure how they would handle it.<BR>\n" );
document.write( "the difference is in the rounding.\r<BR>\n" );
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document.write( "that's if the interest rate was 12% per year.<BR>\n" );
document.write( "not sure what it is.<BR>\n" );
document.write( "you showed 0%.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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