00:01
Now, in this problem it says that you want to take out a $150 ,000 mortgage.
00:08
So, $150 ,000 is what we are given is the p, the loan amount.
00:16
Now, the interest rate on the loan is 5%.
00:19
R is 5 % and the loan is for 30 years.
00:26
So, time period we have 30 years.
00:29
This is given.
00:30
Now, our task is to find the monthly payment that is going to be for this much of loan at this much interest rate.
00:39
So, the formula that i'm going to use here is a to be equals to p times r times 1 plus r to the power n divided by 1 plus r whole to the power n minus 1.
00:57
This formula we're going to use.
00:59
Now, here r is the monthly rate of interest.
01:03
Now, here we are given this is the yearly rate of interest.
01:06
So, monthly rate of interest would be 5 divided by 12 % which is equals to 0 .0042.
01:15
And the time period is 30 years...