document.write( "Question 1181667: Three friends buy a second-hand equipment that costs PhP 120,000. They give a downpayment of PhP 40,000 and agree to settle the balance in 24 monthly payments. If the interest rate is 6% converted monthly, find the payments due at the end of each month. \n" ); document.write( "
Algebra.Com's Answer #849981 by CPhill(1959)\"\" \"About 
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Here's how to calculate the monthly payments:\r
\n" ); document.write( "\n" ); document.write( "1. **Calculate the Balance:**\r
\n" ); document.write( "\n" ); document.write( "* Balance = Total cost - Down payment
\n" ); document.write( "* Balance = PhP 120,000 - PhP 40,000 = PhP 80,000\r
\n" ); document.write( "\n" ); document.write( "2. **Identify the Given Information:**\r
\n" ); document.write( "\n" ); document.write( "* Present Value (PV) = PhP 80,000 (the balance)
\n" ); document.write( "* Number of payments (n) = 24 months
\n" ); document.write( "* Interest rate per month (i) = 6% per year / 12 months = 0.06 / 12 = 0.005\r
\n" ); document.write( "\n" ); document.write( "3. **Use the Loan Payment Formula:**\r
\n" ); document.write( "\n" ); document.write( "The formula for calculating the monthly payment (PMT) on a loan is:\r
\n" ); document.write( "\n" ); document.write( "PMT = PV * [i * (1 + i)^n] / [(1 + i)^n - 1]\r
\n" ); document.write( "\n" ); document.write( "4. **Substitute and Calculate:**\r
\n" ); document.write( "\n" ); document.write( "PMT = 80000 * [0.005 * (1 + 0.005)^24] / [(1 + 0.005)^24 - 1]
\n" ); document.write( "PMT = 80000 * [0.005 * (1.005)^24] / [(1.005)^24 - 1]
\n" ); document.write( "PMT = 80000 * [0.005 * 1.12716] / [1.12716 - 1]
\n" ); document.write( "PMT = 80000 * [0.0056358] / [0.12716]
\n" ); document.write( "PMT = 80000 * 0.04432
\n" ); document.write( "PMT ≈ PhP 3,545.60\r
\n" ); document.write( "\n" ); document.write( "Therefore, the monthly payment due at the end of each month is approximately PhP 3,545.60.
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