# What Is The Application Of Algebra In Day To Day Life?

There are Applications Of Algebra In Day To Day Life,such as selling and buying.
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We use algebra when comparing the prices of phone networks or cars and working out how long it could take to get to a certain location.  Also for how much paint you would need to paint a certain area and how many plants can be planted into a certain area.  Below is an example of how algebra can be used when seeing the amount of items you could buy for a certain amount of money:

You go to the grocery store and have \$10.00 to purchase five \$2.00 candy bars.
This gives you the equation 2x = 10
where x is the number of candy bars you can buy with \$10.00
Many people don't realize that this sort of calculation is Algebra.
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Algebra has many uses in everyday life.
Many of it's applications deal with money and finance.

One of them is the payment formula which is very useful.

If you want to get a loan for a car or a house.
You need to know your monthly payments.

Use this formula:  Pmt = L x [r x ( (1+r)^n)]/ [( ((1+r)^n))-1]
For a fixed APR.
L is the loan amount
r is your monthly interest rate
n is the number of months financed.

If you buy a car for \$30,000, with an APR of 9%, financed for 60 months

your monthly payment will be \$622.75 for 59 months,

In total you will pay \$37,365.04
You will pay \$7,365.04 in interest.

If you solve this equation for n, and substitute Pmt + A for Pmt
where A is an additional principle payment. You can payoff
your loan early and save some interest.

You have a homework problem now.

Solve for n, and let A =\$100.

Find out how many months it will take you to pay off your loan,
and how much interest you will save.

The payment formula can also be derived.

The loan amount = Sum of the Present Value of you payments.

Research this and see if you can derive it.
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