00:01
For this problem we have $3 ,000 invested at 7 .5 % and we're going to leave it in there for 7 years.
00:06
How much is left if we compound it annually, monthly, daily and then continuously? so for annually, the formula, you're going to do 3 ,000, your principal amount, times 1 plus rate, but we're going to turn it into a decimal, over however many times it's compounded per year.
00:30
So if it's annually, it's once per year, you're going to repeat that 1 and then multiply by years, so 7.
00:39
So to type that into your calculator, you're going to do the division first, then add 1, then raise it to the 7th, and then last multiply by 3 ,000.
00:51
That should get you 49 .77 and 15 cents.
01:01
Alright so now to do it monthly.
01:03
It's pretty much the same, except when we get here.
01:09
So instead of over 1 for annually, it's going to be over 12 because monthly means 12 months in a year and then 12 times 7.
01:20
So same process, divide first, add 1, raise it to 12 times 7, which is 84, and then multiply that by 3 ,000...