00:01
Hello, welcome to this lesson.
00:03
In this lesson, we are looking at the present value on a new t that pays 4 ,480.
00:11
And now we are looking at the rate of 5 .4 compounded quarterly.
00:17
So the pv is the present value that is what we are looking at of the new t.
00:24
Then the pmt is the periodic payment.
00:29
So this account pays 4 ,000 periodically.
00:43
Now r is the rate.
00:47
The rate is 0 .054 which is 5 .4 % but this is quarterly.
00:58
So you have to divide by 4.
01:00
You have 0 .0135.
01:05
So this will be the effective interest.
01:09
And now n is the number of compounding times.
01:11
So number of compounding times.
01:22
So this interest compounds four times in a year and it's for eight years...