00:01
Okay, i'm investing this money, seven years, nine percent, and you compound quarterly.
00:07
Here i'm going to use the formula pn equals p0, 1 plus r over 100, power of n.
00:18
That's the basic growth formula.
00:21
Now, pn is the amount at the end of n time periods.
00:29
That i want to find.
00:30
P0 is your starting amount, 2 ,700.
00:38
R is the rate of interest per year, which is 9%, but we're compounding it quarterly.
00:46
So you work out the interest per quarter, so 9 divided by 4 over 100.
00:53
So the r value here is 9 divided by 4...