document.write( "Question 1170446: Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced.\r
\n" ); document.write( "\n" ); document.write( "Assume that you take out a $2000 loan for 30 months at 9% APR. How much of the first month's payment is interest? (Round your answer to the nearest cent.)
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Algebra.Com's Answer #851186 by CPhill(1987)\"\" \"About 
You can put this solution on YOUR website!
Let's calculate the interest portion of the first month's payment.\r
\n" ); document.write( "\n" ); document.write( "**1. Calculate the Monthly Interest Rate:**\r
\n" ); document.write( "\n" ); document.write( "* APR (Annual Percentage Rate): 9% or 0.09
\n" ); document.write( "* Monthly Interest Rate: APR / 12 = 0.09 / 12 = 0.0075\r
\n" ); document.write( "\n" ); document.write( "**2. Calculate the Interest for the First Month:**\r
\n" ); document.write( "\n" ); document.write( "* Loan Amount: $2,000
\n" ); document.write( "* Monthly Interest Rate: 0.0075\r
\n" ); document.write( "\n" ); document.write( "Interest for First Month = Loan Amount * Monthly Interest Rate
\n" ); document.write( "Interest for First Month = $2,000 * 0.0075
\n" ); document.write( "Interest for First Month = $15\r
\n" ); document.write( "\n" ); document.write( "**Therefore, $15 of the first month's payment is interest.**
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