00:01
Hi, from the question given that find the monthly payment needed to a mortage a typical 170 triple zero mortgage loan.
00:11
So, here the amount borrowed p is equal to dollar 170 triple zero and the number of year over 30 years.
00:22
So, n is equal to 30 years.
00:25
Now, we need to convert into a month.
00:29
So, n is equal to 360 month at an annual interest rate of 8 .5.
00:38
So, that rate of interest r is equal to 8 .5 percentage by 12.
00:44
So, which is equal to 0 .7083 percentage.
00:51
Now, the monthly interest rate.
00:56
So, this is the monthly interest rate which is equal to 0 .7083 percentage.
01:11
Now, the monthly payment formula is monthly payment is p times r times 1 plus r to the power of n divided by 1 plus r to the power of n minus 1.
01:33
So, on substituting the known values, 170 triple zero times of r rate of interest will be 0 .7083 divided by 100 times of 1 plus 0 .007083 to the power of n is 360 divided by 1 .007083 to the power of 360 minus 1...