00:01
Let's find the amount that's going to end up in your account, given that you have $19 ,000 deposited at a 4 % interest rate for 8 years.
00:09
So we're going to use the formula, a equals p, 1 plus r over n to the nt.
00:15
So we're going to start with each one of these.
00:18
We're going to have a equals 19 ,000.
00:23
Okay, so i'm going to set up all the formulas first thing first.
00:29
So it'll be 19 ,000.
00:31
Equals 19 ,000, a equals 19 ,000, a equals 19 ,000, because that's our principle.
00:41
Now we're going to go 1 plus r.
00:44
My interest rate is going to be 0 .04.
00:47
So i'm going to put 0 .04.
00:48
So i'm going to go ahead and put that over here.
00:50
1 plus 0 .04, 1 plus 0 .04, 1 plus 0 .04.
00:56
Now i'm going to say the last one for last.
00:59
N.
01:00
N is how many times you receive interest a year.
01:03
This is what's going to change in each one of these problems.
01:06
Annually means you get interest once a year...