00:01
In this problem, we are given that a house was purchased for $250 ,000 by making a down payment of $50 ,000.
00:23
And further, we are given that for the remaining amount, a 30 -year loan period is provided at the interest rate of 3 .5 .5 .5 .5 .5 .5 .5 .5 .5.
00:38
Point 25 % compounded monthly.
00:44
So in this problem we are asked to find out the monthly payments which we denote by d.
00:52
So here we are given that the value of p is $200 ,000.
00:59
The value of r in decimal is 0 .035.
01:04
The whole divided by 12 since the interest is compounded monthly and the value of of n is 30 years times 12 which equals to 360.
01:15
So the formula that we use here is p equals to d times 1 minus 1 plus r the whole raised to the power negative n the whole divided by r.
01:29
So substituting all of the known values we have 200 ,000 equals to d times 1 minus 1 plus r which is 0.
01:41
0 .0325 over 12 the whole raised to the power negative 360 the whole divided by 0 .0325 over 12.
01:54
So here we need to solve for d...