00:01
All right, this one says as part of your retirement plan, you decide to deposit $3 ,000 at the beginning of each year, enter an account paying 5 % interest compounded annually.
00:10
So your formula is this annually, so to the t, not nt.
00:21
Nt is compounded like different semi -annually or monthly, quarterly, whatever.
00:27
Okay, so how much money would be in the account after 10 years? so number one, so a equals, was it 3 ,0001 plus your percentage rate, which is 0 .5 % to the 10 years.
00:46
So you just plug this into the calculator.
00:49
So 1 .05 to the 10th times 3 ,000 is $4 ,886 .68 .2.
01:02
How much of the account? we were at 20 years, so same formula, same numbers...