00:01
So here i have to start off by making one assumption, right? i'm going to assume that all is paid at the end.
00:09
You can do these problems in two ways, right? you could imagine dale pays a fixed amount every month or every year, but the way that it's worded, i think it is that dale is just paying the entire thing off at the end of three years.
00:23
So we have 8 ,000 and we have this 15 .2 % rate compounded semi -annually.
00:31
So we have to deal with this 15 .2%, right? that 15 .2 % is per year.
00:39
Rates are always given in terms of years.
00:41
So this, if we divide the top and the bottom by two, we get 7 .6 % over six months.
00:51
So every six months, we're going to have to pay 7 .6 % interest.
00:56
So after the first six months, we owe 8 ,000 plus our interest, right? if we imagine, cross that out, we'd just be at 8 ,000...