00:01
Here, we're told that we're going to invest $5 ,000 compounded monthly.
00:07
So the equation is going to be 1 plus r, which is 0 .12, that's 12 % over monthly is 12, to the 12t.
00:18
This tells us that a is equal to 5 ,000 times 1 plus 0 .12 over 12 to the 12t.
00:24
And in case you aren't aware, this is the equation i am following.
00:30
A equals p times 1 plus r over n to the n t, where a is what we'll have in the future, p is what we have now, r is the interest rate, n is the number of times compounded per year, so monthly it's 12, and then t is just the variable t.
00:43
So we now know an equation for any given amount of time.
00:48
Well, i want to know how long until this reaches 6 ,500...