00:01
This question, the required monthly payment for a 30 -year home mortgage is given by the amount.
00:05
The principal amount is 211000.
00:13
The annual apr, the annual percentage rate, which is given by, which is given as 4 .75 % compounded annually, compounded monthly.
00:29
So, the 30 -year home mortgage, n equals to 30 years here.
00:38
So, before we say n equals to 30, what is important to realize, it's not the small n, it's actually the capital n, because it's in the number of years, so 30 years.
00:49
So, we need to convert that to a small n, which is 30 times the monthly, because 12 months in a year, so that would become 360.
00:59
Similarly, apr becomes r, which implies apr in terms of r is going to be 4 .75 divided by 12.
01:09
The whole thing is going to be divided by 100.
01:13
Okay.
01:14
So, r essentially would be equal to 0 .00375...