00:01
So a $13 ,000 loan is to be amortized for 10 years with quarterly payments.
00:15
So this is 40 quarters.
00:22
Payment is $414 .98 per quarter and the interest rate is 5%.
00:36
It's an annual rate so divided by 4 gives us 0 .0125 per quarter.
00:48
And we want to know the unpaid balance.
00:52
So balance immediately after the sixth payment.
01:00
After sixth payment.
01:06
For a loan payments are made at the end of the month.
01:10
So if this is your loan and this is times zero.
01:16
Well let's just first look at the times.
01:19
Here's my times zero, one, two, three, four, five, six.
01:29
I make a payment here.
01:32
I make a payment here.
01:35
I make a payment here.
01:37
I make a payment here.
01:39
I make a payment here.
01:40
And my sixth payment is right there.
01:44
So if i want to know the balance right after that payment.
01:49
So balance at time is six right after that sixth payment.
01:57
Then i should look at what my loan value is brought up to that point...