Jim needs $1,000 to buy a new flat-screen TV. Since he has only $7, he borrows the remaining balance from his sister Mary. The loan will be repaid in 3 annual installments at an interest rate of 10%, compounded annually. The formula for calculating the monthly payment P is P = (L x C x r) / (C – 1) where L = amount of the loan, r = annual interest rate, and C = compounding factor = (1 + r)^N where N = number of annual payments. How much does Jim have to pay Mary at the end of each of the next 3 years (rounded to the nearest penny)?	Pick: A) $357.67 B) $375.85 C) $387.40 D) $399.30 E) $433.33
L = 993   r = 0.1   C = 1.1^3 = 1.331   Insert all of these in the formula and we get   P = 993*1.331*0.1/0.331   In order to resolve above without a calc, we need to find the approx value of 0.1331/0.331 ~ 0.4~   ~ 993*0.4   ~ 397   Answer $399.30
<result>D</result>
Jim needs $1,000 to buy a new flat-screen TV. Since he has only $7, he borrows the remaining balance from his sister Mary. The loan will be repaid in 3 annual installments at an interest rate of 10%, compounded annually. The formula for calculating the monthly payment P is P = (L x C x r) / (C – 1) where L = amount of the loan, r = annual interest rate, and C = compounding factor = (1 + r)^N where N = number of annual payments. How much does Jim have to pay Mary at the end of each of the next 3 years (rounded to the nearest penny)?