00:01
So in this problem, we're told that amanda is going to invest $5 ,300 into a savings account that gets 5 .9 % annual interest and it's going to get compounded monthly.
00:10
We want to know how much is she going to have after five years.
00:13
Well, to do this, we need to use our compound interest formula, which is a of t equals to a sub zero times 1 plus r over n, all raised to the nt power.
00:26
Well, a sub zero, that represents the amount invested.
00:29
So in this case, that would be 5300.
00:31
Then we'll have 1 plus.
00:33
Well, then we have our rate.
00:34
But remember, we have to turn our percent into a decimal.
00:37
To do that, we move our decimal point two places to the left.
00:40
So we'll have 0 .059...