00:01
So here's our problem.
00:03
And we are going to use the formula for compounding compound interest here quarterly.
00:09
And so as you see, i've labeled what the different variables mean.
00:13
So we're going to have to start out and do our first year, our second year, and then so on.
00:18
So for our first year, we start out with the 3 ,600.
00:27
We have our rate of 3 .5%, which when we change to a decimal, we move over our decimal two times to the left.
00:39
So it's 0 .035 over n.
00:45
N is the times per year.
00:48
So quarterly means it's four times per year.
00:51
And then as our exponent, we have our four times per year.
00:55
And since we're just going to do our first year, because she adds more after the first year, we're just going to do one year to start.
01:01
So have a calculator handy, because you're going to have to do a lot of math here.
01:06
And so we have 3 ,600 times one point.
01:17
When you change the 0 .035 divided by 4, when you figure that out, it's 0 .00875.
01:27
And 4 times 1 in the exponent is 4.
01:30
So now i would probably just plug all this into a calculator...