00:01
This problem gives a present value on a credit card loan as $8 ,430.
00:10
He wants to calculate an r value or his monthly payment.
00:17
Okay, so his r value is going to be this $8 ,430 divided by one minus his interest rate, one plus his interest rate.
00:33
And that's going to be, so three years, there'll be, negative, his end value will be 36 because he's going to pay for 36 months divided by i.
00:46
His interest, they said, was 27 % compounded monthly.
00:52
So it's going to be 0 .27 divided by 12.
00:57
Okay.
00:58
So that's going to be a 0 .0 -225 each month.
01:13
So we plug this into the calculator.
01:17
So we're going to have 8 ,430.
01:22
Our interest rate we said was 0 .0225 so we're going to do 1 minus 1 .0225 to get to the negative 36 power because we're going to go for three years and all divided by 0 .0225 his monthly payment needs to be around $34 .16...