00:01
To give us a formula for monthly payments and dollars that depends upon the amount of your loan, which is a, your interest rate, which is i, and i in this case is going to be the same as r over 12, and then n would be the number of payments that you're going to make.
00:21
So n is going to be the number of payments.
00:29
I'm sorry, it's going to be the number of years in this case, number of years.
00:33
I had to go back and reread.
00:34
I just did a different problem.
00:35
So n is a number of years.
00:37
So we're going to come up here and look at allison, and we're going to say her monthly payment, i'm going to put m, it's going to be $250 ,000 for her month for the financing at a rate of 5 .2 % per year.
00:50
So we're going to put 0 .052 over 12, and then we're going to put that as 1 minus 1 plus .052 over 12 to the negative 12, and she's going to do this for 15 years.
01:05
And then we're going to do the same thing for nathan.
01:08
We'll go to our calculator in a minute.
01:10
And he's going to get $250 ,000, the same amount.
01:14
He's going to have 5 .6%.
01:17
So we're going to put 056 over 12, and then we'll go 1 minus 1 plus 0 .056 over 12 to the negative 12.
01:27
And he's going to do this for 30 years.
01:30
So let's see what their monthly payments are going to be.
01:32
And then they want to know how much interest they're going to pay.
01:35
So let's go to our calculator real quick, and i'm going to go $250 ,000.
01:39
I'm bad about that.
01:41
Okay.
01:43
Parentheses, 0 .052 divided by 12.
01:47
And then i'm going to divide that by, and i'm going to open another parenthesis for the denominator.
01:53
1 minus, parentheses, 1 plus .052 divided by 12.
01:59
And i'm going to raise that to parentheses, negative 12 times 15...