00:01
So the price of the new car is $32 ,000.
00:06
Down payment is 25%.
00:10
So 25 % times the price is equal to let's see, 32 ,000 times 0 .25 is equal to $8 ,000.
00:26
So the loan amount to finance the car is $32 ,000 minus $8 ,000 which is $24 ,000.
00:41
And then our interest rate is 10 % compounded monthly.
00:54
So n is equal to 12 times per year.
00:57
And what monthly payment will she be required to make if the car is 24 months? well then the payment is going to be the loan amount times r over n which is 0 .10 divided by 12 which is 0 .00833.
01:31
So payment is equal to the loan amount times 1 minus, no, times r over n divided by 1 minus 1 plus r over n to the negative nt.
01:46
And this then is going to be the loan amount is $24 ,000 times 0 .0083 divided by 1 minus 1 .008.
02:01
Now this is multiple threes, to the negative nt.
02:10
Well nt is two years and nt is the 24 months.
02:19
So this is to the negative 24.
02:22
And that then is equal to $1 ,107 .48...