00:01
All right, so we have it will long buy the deaths for $2 ,400 and we'll pay back $250 per month with monthly interest of 3 % on the unpaid balance.
00:11
So we're going to calculate the balance after the second payment.
00:17
So in this case, at time zero, the balance is going to be $2 ,400.
00:28
And we can say that this is t months.
00:33
So then after one month, we're going to have.
00:37
The balance is going to equal to $2 ,400 minus the $250, then plus the $2 ,400 minus $250, then plus the $2 ,400 minus $250 times 3%, to 0 .03.
01:00
So, $2 ,400 minus $250 is going to give us $2150, then plus 2150 times 3%.
01:13
So plus 6450.
01:17
So the balance after the first month is going to be 2214 .65...