00:01
In this question we have given, p, principal amount, that is equal to $300 ,000 and r, monthly interest rate, that is, 9 divided by 12, that is 9 divided by 12, that is coming 0 .0075.
00:39
And n is number of month, that is 35 year, that is 35 multiplied by 12, that is coming 420 month.
01:03
In first part, we have to calculate the monthly installment.
01:18
To calculate the monthly installment, the formula is p multiplied by r multiplied by 1 plus r power n divide by 1 plus r power n minus 1.
01:57
Put this value in formula, we are getting 3 lakh multiplied by 3 .000.
02:08
0 .0075 multiplied by 1 plus 0 .0075 power 420, 1 plus 075 420 minus 1.
02:36
It is coming 2 .250 multiplied by 1 .0075, power 420, divide by 22 .063, divide by 22 .075, 2 .075, divide by 22 .0633.
02:53
Solve this we are getting 2351 .97891 the answer is 2352 this is the answer for first part in second part we have to find outstanding principle we have to find outstanding principle principle is equal to present value of annuity of monthly payment for 30 years...