00:01
Let's find the future value for this amount of money, for this information, if it's going to be compounded continuously, and if it's going to be compounded semi -annually.
00:11
So let's look at the formulas here.
00:13
Here we're going to use a equals p 1 plus r over n to the n -t.
00:18
Here we're going to say a equals p, e to the rt.
00:23
So let's plug in our values.
00:25
We're going to have 8704 -56.
00:28
That's going to be p in both situations.
00:33
So now we're going to have one plus.
00:35
My interest rate is 6.
00:37
So i'm going to put 0 .06.
00:39
So we'll put that in place of r in both situations.
00:43
And then here's what we're going to have a little different.
00:47
In is semi -annually.
00:48
So that means we've got to put a 2 in place of n.
00:51
Don't have that in the other formula.
00:53
And our time is nine years.
00:55
So that's going to go in nine years here...