00:01
All right, the written problem and this question here are different.
00:06
So i brought this over to show you the problem that i'm actually going to be doing.
00:09
We need this formula, a equals p times a quantity of 1 plus r over n to the nt power.
00:19
P stands for principal.
00:20
It's the initial amount invested.
00:22
It's how much you're putting away.
00:24
So it's the initial amount.
00:26
Hold on, i'm spelling things wrong.
00:28
There it is.
00:29
I -n -i -t -i -a -l amount.
00:34
All right.
00:35
R stands for rate.
00:36
And remember, whatever rate you have, you want to make sure that you put it in decimals when you plug it in here.
00:42
T is time.
00:45
And because you were talking money, it's always in years.
00:49
And that's going to be a big deal because they want to know about 10 months for part a.
00:53
And n is special and it's in two places.
00:56
It is the number of times your money is compounded.
01:04
So let's look at this problem.
01:06
Suppose that $3 ,000 is invested.
01:08
So there's your p at 4 .5 % annual interest rate.
01:15
So that's 0 .045, because remember we said we always got to do it in decimals.
01:19
So it's two places to the left.
01:21
Compounded monthly.
01:22
Well, gosh, there's 12 months in a year.
01:24
So n is 12.
01:25
How much money will be in the account in 10 months? now, remember we said that time had to be in years.
01:32
So 10 months out of 12 months...