00:01
If we took out a loan for $241 ,865 and our interest rate was 3 .78 % compounded monthly, what would the payout of our loan be? so the payout of our loan means that we are going to, after 16 long years of paying off this loan, how much will we have paid with interest? so again, this is a formula.
00:32
We're going to take our starting amount, 241 ,865, and we're going to multiply that times one, meaning 100 % of that loan, plus 0 .338 over 12 because it's compounded monthly and there's 12 months in a year.
00:54
And we're going to raise that to the 16 times 12 power.
00:58
So 16 for the number of years and 12 because we're compounding monthly.
01:03
And using our calculator, we're going to get 241 ,865 times 1 .00315 to the 190 second power.
01:17
And multiplying that through, we will have a final payout of $446 .501 .51...