00:01
Now, for this problem, i'll note that i'm going to assume that we are looking at a situation with annual compounding, just because that's the most reasonable assumption to make, and i don't have any further information to work with here, but of course, you may need to make some adjustments as needed.
00:18
So we have that the future value, a, is going to be equal to our principal times 1 plus our interest rate.
00:29
Now, i'll go through the general form.
00:31
It's 1 plus our annual interest rate divided by the number of times per year the interest is compounded to the power of the number of times that our interest is compounded per year times the number of years.
00:47
So, i'll just go through and label these as 1, 2, 3, and 4.
00:51
So, for 1, we know that the present value is $2 ,300...
