00:01
All right.
00:01
So the question here says that consider student loan of 12 ,500.
00:06
So the loan amount is $12 ,500 at a fixed apr of 6 % for the for 25 years.
00:20
The time, the term, this is 25 years, right? now, first part is to compute the monthly payment, right? so how do we compute the monthly payment? this will be equal.
00:35
To the amount of the loan multiplied by the apr upon the number of payments in per year.
00:48
So we have 12 payments in a year, right? so here this is 0 .06 divided by 1 minus 1 plus.
00:59
This is a the rate of interest upon 12 minus 12 in sorry this is to the power minus 12 into 25 right that the loan is for 25 years so this is equal to 12 500 into 0 .06 by 12 divided by 1 minus 1 plus 0 .06 upon 12 to the power minus 12 minus 12 to the power minus 12 by 25 so this will be equal to $80 .54 per month.
01:36
Right.
01:37
Now the next part of the question, it says that determine the total amount paid over the term of the loan.
01:43
So the total amount that will be paid, this will be equal to the number of payments that need to be made multiplied by the amount of the monthly payment, right? so here the total number of payment that you need to make will be 12 by for 25 years into the amount to be paid is $80 .54.
02:12
So this is equal to $24 ,162 right...