My house is a mortgage free house.

So on day zero, you have a 200,000 loan.

I've essentially become the lender to the home owner, and so the home owner's morgage payment will now come to me the Investment Bank .

So they just kind of held fast and didn't sell their CDOs.

I was a little behind in my loan payments.

And then we're going to set p is equal to your monthly payment, your monthly mortgage payment.

You don't pay any mortgage payments.

Some of which is interest, some of which is principle, but it's the same amount you're going to pay every month to pay down that loan plus interest.

1 of 1 million is another 10,000 a year in property taxes.

We have Loan C.

The math is a little bit more difficult with that, so what we're going to do in this case is assume that I only pay the interest portion, and at the end of the loan I pay the whole loan amount.

liabilities.

I'll do kind of a more complicated one.

Then you make your second payment.

So I have some kind of weird student loan, where 5,000 comes due all of a sudden.

And for the sake of simplicity, I'm going to assume that the loans in this presentation are interest only loans.

My mom couldn't afford the mortgage.

So now, all these people say, what am I doing?

Hanako made the final payment on her car, and felt very satisfied.

So just like that, we were able to figure out our actual mortgage payment.

And you say, this group of the CDOs, they'll get the first payments. or if any payments that go, immediately go to this very senior tranche, right?

So actually, let me do that.

There's 1,000 of me, and we are now going to pay the 10 .

This right here is the debt, or essentially the principal payment on your mortgage, or how much do you owe to the bank.

He was paid 10000 dollars.

He was paid 10,000 dollars.

If the ransom not paid...

These CDOs were already an issue.

This is how you can actually solve for your actual mortgage payment.

So you have accounts receivable of 400

The State has a set hourly rate they pay for this kind of work.

Don't steal it.

This is the principal amortization.

I pay you to act.

Because some of them have paid, and some of them are still paying.

Payment

Pay up

If n is equal to 1, then our situation looks like this you take out your loan, you compound it for one month, 1 plus i, and then you pay your monthly payment.

Can you pay off your loans in a year?

Not until all has been paid

How many payments will it take to pay off this loan?

I have to pay the electricity bill. Can I leave this here?

On the contrary, passengers themselves must pay.

Now one thing I want you to keep in mind is, they get 10 only if every one of these borrowers pays their loans, never defaults, never pre pays.

The mortgage payment, we calculated that before, using our mathematical knowledge of geometric series.