document.write( "Question 1207542: Yankee Construction agreed to lease payments of $762.79 on construction equipment to be made at the end of each month for six years. Financing is at 15% compounded monthly.\r
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\n" ); document.write( "b) If, due to delays, the first eight payments were deferred, how much money would be needed after nine months to bring the lease payments up to date?
\n" ); document.write( "c) How much money would be required to pay off the lease after nine months?
\n" ); document.write( "d) If the lease were paid off after nine months, what would the total interest be?
\n" ); document.write( "e) How much of the total interest would be due to deferring the first eight payments? \n" ); document.write( "
Algebra.Com's Answer #845520 by ikleyn(52926)\"\" \"About 
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\n" ); document.write( "Yankee Construction agreed to lease payments of $762.79 on construction equipment to be made
\n" ); document.write( "at the end of each month for six years. Financing is at 15% compounded monthly.
\n" ); document.write( "What is the value of the original lease contract?
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\n" ); document.write( "\n" ); document.write( "        In this my post,  I will solve part  (a),  ONLY.\r
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document.write( "In this problem, the value of the original lease contract is the amount of a loan, which requires \r\n" );
document.write( "monthly payments of $762.79 at the end of each month for six years at 15% compounded monthly.\r\n" );
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document.write( "Use the standard formula for monthly payments of a loan\r\n" );
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document.write( "    M = \"P%2A%28r%2F%281-%281%2Br%29%5E%28-n%29%29%29\",    (1)\r\n" );
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document.write( "where P is the loan amount; r = \"0.15%2F12\" is the effective interest rate per month;\r\n" );
document.write( "n is the number of payments (same as the number of months, n = 6*12 = 72);\r\n" );
document.write( "M is the monthly payment.\r\n" );
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document.write( "In this problem  M = $762.79;  r = \"0.15%2F12\".\r\n" );
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document.write( "Substitute these values into the formula and get this equation\r\n" );
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document.write( "    762.79 = \"P%2A%28%28%280.15%2F12%29%29%2F%281-%281%2B0.15%2F12%29%5E%28-72%29%29%29\".    (2)\r\n" );
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document.write( "In equation (2), calculate separately the coefficient (the multiplier, or the factor)\r\n" );
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document.write( "    \"%28%280.15%2F12%29%29%2F%281-%281%2B0.15%2F12%29%5E%28-72%29%29\" = 0.021145013  (rounded).\r\n" );
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document.write( "Now from equation (2), find the ANSWER\r\n" );
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document.write( "    P = \"762.79%2F0.021145013\" = 36074.23.\r\n" );
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document.write( "ANSWER.  The value of the original lease contract is  $36074.23.\r\n" );
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