00:01
The way i'm reading this question, it's definitely a compound interest formula where you have the amount is equal to the principal and then 1 plus r over n to the nt power.
00:13
And the way i'm reading it is they're saying that, well, no matter what a equals p and then the one plus, they tell you the interest rate on this problem is 3%.
00:27
So you have to make it .03 divided by.
00:31
Now the n value changes if you're doing annually or quarterly.
00:35
Annually would be n equals 1 to the 1 times 6 because it's after 6 years.
00:44
So sometimes you have to put it in parentheses.
00:49
Versus, let me do a few enters down here, that when you do it quarterly, so that's going to be option letter b, that the end values are going to be four.
01:04
I forgot to write a equals.
01:06
Now, the way i'm reading it is the present value would be that p number, and they're telling you that you end with 29 ,000.
01:16
And so what you have to do to solve for p is to take that 29 ,000 and divide by that 1 plus 0 .03 to the 1 times 6 .3.
01:32
Power...