00:01
So we're going to deposit $14 ,000 for four years at 6%.
00:05
And we want to know how much interest is going to be earned when we do this quarterly and semi -annually.
00:10
So we're going to look at the formula, a equals p, 1 plus r over n to the n -t.
00:16
This will tell us how much money is going to be in the account at the end of the length of time.
00:22
So let's go plug in our values.
00:24
We're going to have a equals 14 ,000.
00:27
That's going to be 1 plus our interest rate, which is, 0 .06 over.
00:33
Now here's where we're going to change.
00:34
For quarterly, our n is going to equal to four.
00:37
For semi -annually, our n is going to equal to 2.
00:40
So we're going to put that over 4, and that'll be times 4 times 4 because we're looking at 4 years...