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hi everybody physics ninja here today what i want to do is i want to do the derivation of the amortization formula and basically its this formula right here on the side its the amount of money youre going to pay per period now in my case i recently bought a new pickup truck and boy do i love my pickup truck but i borrowed some money from a bank and the bank charged me a interest rate based on that interest rate they came up with a monthly payment right im gonna pay the truck off over five year period thats 60 months how did they determine the monthly payment that they would charge me so were going to go over this formula and the reason i want to go over this formula is because when i bought my truck the sales person wasnt a hundred percent truthful with me and i didnt really trust them so i said you know what i want to figure out how they calculate this number so ill go through that with you in all details all right uh like with all my videos if you like it give it a thumbs up