00:01
Okay, so we're going to be figuring out the monthly payments for this mortgage.
00:05
We're told it's a $2 million mortgage, so that's going to be our present value, and we're told that we have a 4 .5 % rate, and we're making monthly payments for 15 years.
00:15
So our i value is a rate divided by 12, since we're making monthly payments, and our end value is going to be the total amount of payments we make, which is 15 times 12 or 180.
00:25
And so from here, we're just going to use this payment equation i have written up in the top right, which is the same exact one we would be using for annuities.
00:34
We can use the same equation for mortgages and loans as well.
00:38
And so we're going to have our payment is equal to $2 million, multiplied by our i value, divided by 1 minus 1, 1 plus our i value, raise the negative kind of frame out of room there.
01:04
So i'm going to make this a little bit smaller...