00:01
In this question, we have been given the value of p as it will be $12 ,000 and then we can say that the value of r is equal to 3 .5 and then in the denominator it will be 1200.
00:14
Now, the value of n will be here equals to 6 years and this 6 years means that it can be written over here as we can say 6 multiplied with 12 that is 72 months.
00:27
So, let us here write it as 6 and then here it is multiplied with 12.
00:33
Now, we can say that the monthly payment can be here obtained with the help of this very formula that we are going to write.
00:40
So, the formula is here equals to we can say pr and now it will be here 1 plus r raised to the power n and then in the denominator it is 1 plus r and then here it is raised to the power n minus 1.
00:57
So, now here the value of p can be written to be equals to 12000 and then here it is multiplied with 3 .7 divided by 1200 and then here it is going to be we can say it will be here let us write that is 1 plus it is 3 .7 divided by 1200.
01:18
So, this 1200 is basically we can say we have divided the 3 .7 percentage by 12 and then we have divided it by 100 because it was in percentage.
01:32
Right? so, it can also be written as 3 .7 and then here it will be percentage divided by 12.
01:38
So, both are same thing and then it will be here raised to the power we can say 72...