00:01
Hello everyone, so we will solve this question here.
00:02
Let us write the given part from the question.
00:04
So we have to find the present value here and the future value.
00:09
Future value it is given as $17 ,000.
00:14
Okay.
00:15
Then the time period which is denoted by t.
00:19
Okay, small t here.
00:21
It is given as 4 years and the rate.
00:27
Rate is given as 8 percentage so in numerical value it can be written as 0 .08.
00:32
Okay.
00:32
Now we know the amount formula for compound interest.
00:36
It is p multiplied by 1 plus r upon n raised to power nt where p is the principle, r is the rate.
00:43
Okay.
00:43
And a is the amount here.
00:45
Okay.
00:46
So we are taking the first case when rate is compounded annually.
00:50
Rate is compounded annually.
00:56
So if the rate is compounded annually, that means that n value will be equal to 1.
01:01
So put here n is equal to 1...