00:01
Okay, so we are given question that solomon takes a loan or $15 ,320 at 10 .29 % for two years and we need to find charges he needs to pay.
00:13
Okay, so let's write the data first.
00:15
So, principal amount is 15320.
00:19
Apr, that is rate of interest, r is 10 .29%, which can be written as 10 .29 over 100 and that is 0 .10 .10.
00:30
029.
00:31
Time is 2 years so it is 2.
00:35
Okay so to find the amount he pays extra first we'll calculate the monthly payment he does so that is given by formula p r by 12 1 plus r by 12 raise to 12t over 1 plus r by 12 x2l is to 12t minus 1 so let's substitute the values so this is 153 2 times r is 0 .1029 over 12.
01:06
This is 1 plus 0 .1029 over 12 raised to 12 times 2 upon 1 plus 0 .1029 over 2l raised to 12 times 2 minus 1.
01:21
And on calculating this we get ms, sorry, we get ms 70 .9 so this is the monthly payment is doing...