00:01
Hello students, let read this problem.
00:02
The problem says the matinees are planning to refine their home, assuming there are no additional finance charges.
00:13
The outstanding balance on their original loan, so original loan is there, that is dollar 1 5000000.
00:26
The finance company has offered them two options.
00:34
So option a has, so there is a two options is given.
00:39
So option a, a fixed rate mortgage and interest of 5 .5 % per year, compounding monthly payable over a 30 years of period.
01:03
360 equal monthly installment.
01:09
This is the first option.
01:11
And option b also given a fixed rate mortgage of an interest rate of 5 .25 % per year compounded monthly payable over a 15 years in 180 equal.
01:39
Equal monthly installment.
01:43
So the question is given, find the monthly payment required to the mortgage each of this loan over the life of the loan.
01:53
Round of your answer to the nearest percent.
01:59
So we have to find out the solution of the first problem.
02:05
So loan amount is given.
02:08
So option a, that is rate of a.
02:15
Interest are 5 .5 % so 0 .055 n is equal to 360 compound date monthly so pv is equal to pm t 1 minus 1 plus r to the power minus n whole divided by r so the total amount 150 0 0 0000000 that is equal to pmt.
02:55
So pmt, how much then you have to put those values? so 1 minus 1 plus 0 .055 divided by 12 minus of 360...