00:01
So lois's student loan was in the amount of $37 ,000 and that was for a term of nine years with an annual interest rate of 5 .875 percent.
00:25
And then we want to determine her monthly payment on the loan amount after she graduates in three years.
00:34
So graduates in three years, that means that she has payback term equal to nine minus three years, which is six years.
00:58
So our payment amount then is going to be the loan amount at that time, which it will grow for three years by 1 .05875 to the third power because it grows for three years.
01:21
And then we want to multiply that by, let's see here, our monthly rate, which we'll call i.
01:32
I is the monthly rate, which we'll have to calculate, divided by, let's see here, it's gonna be one minus one plus i to negative six years times 12 months.
01:58
And then our monthly interest rate, well, one plus i to the 12th will be one plus r because that's how much interest accumulates after one year...