00:01
Okay, this problem says, assume you buy a new car for $20 ,100 and choose to make a 15 % down payment.
00:09
Okay, now i'm going to write this stuff down where i won't forget it.
00:13
So, the cost of the car is $20 ,100.
00:19
We're going to make a 15 % down payment, and then it says your payments are calculated to be $305 each month for five years.
00:32
So, the payment is $305 monthly, and that is for five years.
00:46
Okay, the first question says, well it says you have forgotten the interest rate, but you can find out some important information.
00:55
Find the amount of your loan.
00:58
Well, the car costs $20 ,100.
01:01
We're going to make a 15 % down payment.
01:05
So, i'm going to multiply this by 0 .15, and that's going to be the amount of the down payment.
01:13
So, $20 ,100 times 0 .15 is $3 ,015.
01:21
Now, that's the down payment.
01:25
So, to get the amount of the loan, you know, this is what you paid for the car, and you're going to put this much down.
01:34
So, the rest of it, the rest of that $20 ,100 is going to be the amount of the loan, which is $17 ,085.
01:52
Okay, so there's your answer to a.
01:58
B says, find the future value you will have paid for the loan at the end of five years.
02:07
Well, what are we paying on the loan? we're paying $305 every month.
02:13
So, i'm going to multiply that by 12 for five years.
02:17
So, i'm going to also multiply it by 5...