00:01
So hi in this question we have a guy whose name is rich.
00:07
He's buying a home for he's buying a home for two like forty four thousand eight hundred dollars so he's buying home for so home cost would be a cost is a dollar new cost is a two lack forty four thousand eight hundred years dollars all right all all right okay now so he's paying a down payment of around 15 % it is given in the question he's paying a down payment of 15 % so down payment is 15 % 15 % of overall cost so if you calculate the down payment and it would be 15 % that is nothing about 15 and upon 100 of 24480 .00.
01:10
So if you and you calculate it, just multiply these two numbers and you will get down payment as 36 ,720, 26 ,720 .20 .0 .0 us dollars.
01:27
So this is the amount of down payment.
01:31
He's going to pay.
01:33
Okay.
01:34
He's paying this much of amount of money in advance.
01:37
As a down payment and the other much amount of he's paying on a loan he takes a loan for all those remaining amount for 25 years so number of years is 25 years so the year so the tenure of the loan is 25 years all right and the interest rate interest rate is we have interest rate as 5 .25 percent 5 .25 percent all right yeah so we need to calculate what will his monthly mortgage payment be we need to find out find out a monthly mortgage payment so okay so applying just basic formula to find out monthly mortgage payment we can easily find out that now first of all how much loan rick need to pay we need to calculate so remaining so much remaining amount which is to be loan is 24480 minus that much of money here already paid okay as a down payment 36720 so we get a remaining amount as loan amount is 208 080 208 all right 208 all right 208 all right 8 8 80 80 80 80 zero us dollar so this is the amount of money which is you know settled up using loan okay so that that much amount of loan the rik have bought for 25 years of tenure of interest rate of 25 % now we need to find out how much mortgage monthly payment would be so how before calculating the mortgage monthly payment we need to find out how much months are there in that loan amount.
03:46
So loan amount lasts for 25 years.
03:50
So how much month will be in 25 years? one year contains 12 months, so 25 years contain 25 into 12 months.
03:58
That is equal to nothing at 300 months.
04:02
So there are 300 months.
04:04
So there are 300 monthly mortgage payment.
04:09
There will be 300 monthly mortgage payment.
04:12
Payments.
04:14
All right? okay.
04:16
Yeah.
04:18
All right.
04:19
Now, using the basic formula of calculating a monthly payment of monthly mortgage payment, we can find out that...