00:01
It doesn't look like they give you the formulas.
00:03
So let me just write those down real quick.
00:06
And this is the compound interest formula.
00:09
But then if we ever have the compounding continuously, we use this formula over here, which we'll have to do there at the end.
00:18
So i'll just put that in a box.
00:21
So back over here, what we know in the problem is that we are given $7 ,000.
00:26
So p is 7 ,000.
00:28
The rate is given to us as 3 .6%.
00:32
We have to move the decimal over twice.
00:36
And then it's for nine years.
00:39
And what changes from one problem to the next, like letter a, is annually means n equals one.
00:47
So let me circle that.
00:48
And then you go to the formula, and you plug in all those numbers, 7 ,000, 1 plus .036.
00:55
Let me write that in green.
00:57
Divided by one, and then to the one times nine power.
01:03
Hopefully you see where i got all those numbers.
01:06
And now i'm just typing away.
01:07
One plus .036 divided by one to the, i actually do nine times one in my calculator, but that's okay.
01:15
$9 ,623 .56.
01:19
So i always encourage people to double check, like do the same work as me.
01:24
Because the next one is quarterly.
01:26
There's four quarters in a dollar, four quarters in a basketball game, whatever works for you.
01:31
All of this is the same, except i take out that one from earlier, and i put a four in there, which is why i really like these calculators...