00:01
Hi, so angela has a five -year add -on interest loan, add -on interest of 5 ,850 whatever currency you're billing with, wherever you are.
00:12
And the annual interest rate is 8 .32%.
00:15
How much interest will she pay? what are our monthly payments? okay, so first up, we want to change this to decimals.
00:23
This number divided by 100 is 0 .083.
00:30
2.
00:31
Okay, add on interest.
00:33
What add on interest means is in my world, where i teach, is called simple interest, which means the interest is equal to the principal times the rate times the time.
00:45
Okay.
00:46
So that would mean p, r, t, and this is the amount we're spent, we start with is p, our time is t, the rate is r, we multiply all those.
01:00
Things together...