00:01
Hello, welcome to this lesson.
00:03
In this lesson, we'll find the future value of an ordinary annuity given that the annual rate are compounds weekly.
00:14
All right.
00:14
So we have been given the periodic payment as $280.
00:18
The annual rate is 2 .4 % with compounds weekly for 45 years.
00:25
Right.
00:26
Do we have every as the future value.
00:33
That is what we are looking for.
00:35
We have the pmt as the weekly payment, which is the $280.
00:44
We have the hour, which is a rate.
00:47
Now the yearly rate was given us 2 .4%.
00:52
And now we'd have to divide it by 52, which is the number of weeks in the year, right? so that is compound weekly.
01:01
Okay.
01:02
So this is equal to 0 .02452.
01:10
Okay.
01:13
And now we are looking at the n, which is the number of compounding times.
01:18
So number of compounding time, and with this, it compounds for 45 times, right? then every year it compounds again for 52.
01:34
All right.
01:34
So in its whole period, it compounds 52 times a year, and this is done for 45 years...