00:01
So lou purchases a home for $575 ,000.
00:04
He makes a 15 % down payment and finances the rest on a 30 -year loan with an annual rate of 5 .25 % interest.
00:17
And so let's find how much is 30 % or 15%.
00:24
We have to take 15 % of that $575 ,000, and 0 .15 times $575 ,000 means he's going to make a down payment of $86 ,250.
00:43
Or we could just multiply to find out how much he's going to borrow by taking 0 .85.
00:51
We either subtract these two to find the total or take $575 ,000 and multiply it by 0 .85.
01:00
And so the amount he's going to borrow is $488 ,750.
01:07
Now, we're going to end up having x stand for 1 plus the interest rate.
01:15
And he would make monthly payments.
01:18
So we're going to use that for x.
01:20
So i'm going to put that in my calculator right now.
01:23
1 plus .0525 divided by 12.
01:28
And i'm going to store that as x in my calculator...