00:01
So i like how they give you the formulas, uh, in the problem that principle is 25 ,000.
00:07
The time is seven years.
00:09
And then the rate you have to be careful of because it's 4 .5%, but you have to change it to a decimal.
00:16
So you move that decimal over twice.
00:18
Uh, the word percent actually means to divide by 100.
00:21
So in letter a, when we're compounding semi -annually, that's telling you that n equals two.
00:29
So in our formula, we're just going to type in 25 ,001 plus 0 .045.
00:37
Um, all i can do is plug in two.
00:43
And for those ends in the formula.
00:45
So i'm just taking that calculator and typing that in.
00:48
And i get an answer of $34 ,137 .09.
01:01
So the only thing that's different between that and letter b is now n equals four.
01:08
And so everything else is the same...