00:02
So i'm compounding semi -annually.
00:05
How much is semi -annually? well, this would be twice a year.
00:10
Semi means twice, two times a year.
00:13
Okay.
00:15
So note that i'm compounding a finite amount of times, accountable number of times, two times a year.
00:21
What's my compound interest formula that's finite? well, it would be my accumulated value equals my principal or my starting amount, 1 plus r over n, n is the number of times compound per year to the t power.
00:35
So let's say i invested, i started with $20 ,000.
00:40
For four years at an interest rate of 4 .5%.
00:43
Each interest rate, i always convert to a decimal, so divide by 100, or move the decimal two places to the left...