00:01
Okay, so this problem wants us to find the monthly house payments necessary to amortize the loan.
00:06
Okay, so the present value of the loan is $175 ,000.
00:13
Our interest rate that we're using for this problem, it gave us to us a 6 .24%, but since it's monthly, we have to divide it by 12.
00:23
So it's going to be 0 .56%, 0 .52%, my fault.
00:29
And so that's going to come out to be 0 .0052.
00:36
Okay, and then our number of pay periods, we're paying monthly for 30 years.
00:42
So that's 12 times 30, which is going to be 360 pay periods.
00:50
Okay, so to find our r value, we're just going to use our formula.
00:55
So our value is going to equal to the present value, 175 ,000, divided by parentheses, is 1 minus 1 plus our i value, so 1 .0052 to the negative 360 power divided by our i value, which is 0 .0052...