00:01
We'd like to find how many months will it take to pay this off.
00:06
So we can use our formula.
00:07
Our present value is equal to our monthly payment times 1 minus 1 plus r over n to the nt power divided by r over n.
00:19
And we told that we have a monthly.
00:22
We're given our value of 2370 .88 equal to our $300 times 1 minus 1 plus our interest rate over a number of months.
00:33
So 12 to negative 12 t divided by 0 .1299 over 12.
00:41
And so we just want to go ahead and start distributing to solve for t distributing a bit.
00:47
We get 1 .0108 to the negative 12 t equal to 0 .90669.
00:55
We can take the log of both sides to bring down our 12 t.
01:00
So we get negative 12 t equal to negative 0 .0979 over 0 .0107.
01:09
Now we just divide to solve for t.
01:12
T is equal to 0 .758 years or 9 months.
01:21
So actually let's go ahead and let's go ahead and start working through this a little bit.
01:28
So we have our, we're going to cross multiply these two together and also divide by 300...