document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1207279>Question 1207279</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Consider the publicly held debt of $5.0 trillion in 2006. Use the loan payment formula to determine the annual payments needed to pay this debt off in 9 years. Assume an annual interest rate of 5%. (Round to the nearest billion dollars, e.g. type 605 for $605 billion dollars).\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #845058 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=845058\">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>703</font>\r<BR>\n" );
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document.write( "Work Shown\r<BR>\n" );
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document.write( "Loan payment formula<BR>\n" );
document.write( "P = (L*i)/(1 - (1+i)^(-n))<BR>\n" );
document.write( "where,<BR>\n" );
document.write( "P = annual payment in billions of dollars<BR>\n" );
document.write( "L = loan amount in billions of dollars<BR>\n" );
document.write( "i = interest rate per year<BR>\n" );
document.write( "n = number of years\r<BR>\n" );
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document.write( "In this case<BR>\n" );
document.write( "L = 5000 (since $5 trillion = $5*1000 = $5000 billion)<BR>\n" );
document.write( "i = 0.05<BR>\n" );
document.write( "n = 9\r<BR>\n" );
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document.write( "Let's determine the annual payment<BR>\n" );
document.write( "P = (L*i)/(1 - (1+i)^(-n))<BR>\n" );
document.write( "P = (5000*0.05)/(1 - (1+0.05)^(-9))<BR>\n" );
document.write( "P = 703.450399878939 approximately<BR>\n" );
document.write( "P = <font color=red>703</font> after rounding to the nearest whole number\r<BR>\n" );
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document.write( "This represents <font color=red>$703 billion</font> aka $703,000,000,000<BR>\n" );
document.write( "There are 9 zeros after the 703.<BR>\n" );
document.write( "In scientific notation it would be 7.03 * 10^11<BR>\n" );
document.write( "The exponent 11 means \"move the decimal point 11 spots to the right\" to go from 7.03 to that massive number shown above.<BR>\n" );
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