00:01
We have the loan amount is $28 ,600, paid over three years.
00:07
So that's 36 months.
00:12
And the interest rate is 8 .7%, but that's compounded monthly.
00:17
Compounded monthly.
00:20
So we're going to let x stand for 1 plus .087 over 12.
00:27
And i'm going to actually store that in my calculator as x.
00:31
And our formula for figuring out what the monthly payment is, is to take our balance times x, which would be one plus whatever the interest rate divided by 12 is, to the n power, and this n is standing for the number of months.
00:49
And then times x minus 1, so that will be actually, we'll end up just being that monthly interest rate, divided by x to the n minus 1.
01:00
And so when i carefully put this in my calculator, again, i have stored x, and then i'm going to plug in the values for this particular question.
01:12
So we'll have that 28 ,600, and then our x, which is, again, this value, to the 36th power times the x minus 1, which in effect is going to end up being just this 0 .087 divided by 12 once we subtract the 1 away.
01:29
And then divided by and make sure you put a left parentheses in your calculator x to the 36 power minus one...