00:01
So from our question, we're giving that the principal amount, p, is $3 ,000.
00:10
And we're giving the rate of interest to be 1 .5 % per annal.
00:20
And we're giving time in the years as 10.
00:26
So now let's find the amount after 10 years.
00:29
So the amount will be equal to the principal into rocket 1 plus, the rate of the rate of interest over 100 to the power in why n is the same as t so i'll make it t over here so we have 3 ,000 1 plus the rate is 1 .5 over 100 to the part then so doing this on a calculator you're going to get three four eight one point six two dollars so three thousand $481 .62.
01:24
So now let's find the compound interest.
01:39
So this will be the amount.
01:42
So we have 3481 .62.
01:46
Then you're going to subtract it from the 3000.
01:59
So we get 481 .62.
02:09
So for the b part, we can solve for this part by making a cash flow diagram so let me just make a quick sketch so in 2019 we have 3 ,000 in 2020 1200 2021 200 up to 2029 122026 so for 3 ,000 the time period is 10 years years and the amount for 3 ,000 we calculated and we had a 3 ,000 181 .62.
03:21
So now we are going to calculate it and says the amount earned for $1200 over a span of nine years will be.
03:32
So let me just go.
03:36
So we are going to get one to zero zero zero.
03:39
1 plus 1 .5 over 100 to the power 9 plus 1200 plus 1 .00 1 plus 1 .5 over 100 to the part 8.
03:58
So we are doing it for over a span of 9 years...