00:01
This problem says if $1 ,800 is deposited into an account earning 6%, how much will be in the account at the end of 18 years if the interest is compounded quarterly? so since we're dealing with the compounded problem, we're going to use this formula of y equals a times 1 plus r divided by n raise the nt, where y is our final amount, and that's what we're looking for.
00:20
So we'll leave that.
00:21
And a is our initial amount that we put in, and that was told to us to be $1 ,800.
00:25
And that's times 1 plus our rate.
00:27
And our rate is 6%, but we need to change it to its decimal form by dividing by 100, which would make that 0 .06 divided by the n value.
00:37
And our end values how many times we're compounding that interest in a year.
00:41
And since we're compounding quarterly, that means our n values 4.
00:44
And it will p again for the n times t as well...
