document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1170454>Question 1170454</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Use the Estimation Rule for Short-Term Loans to estimate the monthly payment on a loan of $4500 borrowed over a two-year period. (Round your answer to the nearest cent.)<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 #851185 by </B><A HREF=/tutors/aboutme.mpl?userid=CPhill><B>CPhill(1987)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=CPhill><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=CPhill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=851185\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> You've asked for an estimation using the \"Estimation Rule for Short-Term Loans,\" but you haven't provided the Annual Percentage Rate (APR). Without the APR, we can't calculate the total interest.\r<BR>\n" );
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document.write( "However, I can provide you with the steps and the formula so you can plug in the APR yourself.\r<BR>\n" );
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document.write( "**Estimation Rule for Short-Term Loans:**\r<BR>\n" );
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document.write( "Monthly Payment ≈ (Total Loan + Total Interest) / Number of Months\r<BR>\n" );
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document.write( "**1. Calculate the Total Interest:**\r<BR>\n" );
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document.write( "* **Loan Amount (P):** $4,500<BR>\n" );
document.write( "* **Annual Percentage Rate (APR) (r):** You need to provide this. Let's represent it as \"r\" for now.<BR>\n" );
document.write( "* **Loan Term (t):** 2 years\r<BR>\n" );
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document.write( "Total Interest = P * r * t<BR>\n" );
document.write( "Total Interest = $4,500 * r * 2<BR>\n" );
document.write( "Total Interest = $9,000 * r\r<BR>\n" );
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document.write( "**2. Calculate the Total Loan Amount:**\r<BR>\n" );
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document.write( "Total Loan Amount = Loan Amount + Total Interest<BR>\n" );
document.write( "Total Loan Amount = $4,500 + ($9,000 * r)\r<BR>\n" );
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document.write( "**3. Calculate the Number of Months:**\r<BR>\n" );
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document.write( "Number of Months = Loan Term (years) * 12<BR>\n" );
document.write( "Number of Months = 2 * 12<BR>\n" );
document.write( "Number of Months = 24\r<BR>\n" );
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document.write( "**4. Estimate the Monthly Payment:**\r<BR>\n" );
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document.write( "Monthly Payment ≈ Total Loan Amount / Number of Months<BR>\n" );
document.write( "Monthly Payment ≈ ($4,500 + ($9,000 * r)) / 24\r<BR>\n" );
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document.write( "**Example:**\r<BR>\n" );
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document.write( "If the APR were 6% (0.06), then:\r<BR>\n" );
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document.write( "Total Interest = $4,500 * 0.06 * 2 = $540<BR>\n" );
document.write( "Total Loan Amount = $4,500 + $540 = $5,040<BR>\n" );
document.write( "Monthly Payment ≈ $5,040 / 24 = $210\r<BR>\n" );
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document.write( "**Please provide the APR so I can give you the accurate estimated monthly payment.**<BR>\n" );
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