00:01
When i think about compound interest, i have two different formulas.
00:03
I have finitely compounded, which is a number of times, a finite number of times in a year.
00:09
This will be what my account will be times what i start with, 1 plus my interest rate over the number of times compounded per year.
00:18
And then there's continuously compounded.
00:20
This is every second of every hour of every day.
00:23
This will be whatever i start with, e, which is a constant raised interest rate.
00:29
I'm compounding monthly, so i'm going to use my finite formula with n equals 12.
00:33
I want to have, in the future, $4 ,400, and i want to figure out what i'm going to start with, so my present value...