00:01
I'm hoping i'm reading the problem correctly because i swear i saw it said compounded quarterly.
00:06
I do apologize if i'm not reading the right thing.
00:09
But if that's the case, it's n equals 4 when you look at the compound interest formula, 1 plus r over n to the nt power.
00:19
So of everything else i'm looking at, i believe they wrote out that p equals 70 ,000 because it wants the present value if you're putting 70 ,000 in.
00:30
Into an account of two years, so t equals two.
00:36
And the rate, if i've read this correctly, looks like it says six.
00:42
So it must be six percent.
00:44
But the key with that is the word percent means divided by 100 per divided by cent, a hundred.
00:51
So that's really 0 .06...