00:01
Hi there, so for this problem, we are asked to determine the outstanding principle of the given mortgage and we are given the following.
00:10
The principle amount is 100 ,000 dollars.
00:14
And the time for this, the long term for this is in this case, 38 years.
00:25
And the rate for this.
00:28
Will be 9 .9%, but we need to divide this by the number of years.
00:33
So this in this is 0 .099 and we need to divide this by 12.
00:37
So this will give us a value of.
00:49
0 .00825.
00:52
Okay, and once we have this.
00:59
We are told that this is after 12 years.
01:02
So the total number of payments, so that will be the remaining years times the month.
01:07
So, in this case, we'll be then.
01:09
18, because that will be the remaining years because.
01:14
20 years has passed and then this times 12, so this will give us a value of.
01:23
216 okay so for the expression of the monthly payment, because that is what we need to determine.
01:31
So the monthly payment for this.
01:34
Well, the upstanding principle is the principle minus the monthly payment times 12 times 20, but 1st, we need to find that monthly payment.
01:43
So the monthly payment is the principle amount.
01:46
Then this times the rate.
01:51
Times 1 plus the rate elevated to end then this divided by.
01:57
1 plus the rate elevated to end and this minus 1...