00:01
Fred invested $4 ,500 at 2 .5 % interest compounded quarterly for six years.
00:08
How much money does he have at the end of the six years? so we're going to utilize the formula for compound interest.
00:17
A is going to be the amount he has after the six years.
00:23
It's going to equal to p, which is our starting amount, 4 ,500.
00:28
And we're going to then multiply that by 1 plus our rate, which is 2 .5%.
00:40
We do need to turn into a decimal.
00:43
So we're going to take this decimal and move it two spots.
00:46
One, two.
00:48
So it's going to be plus 0 .025 divided by n is the number of times interest is compounded per year.
01:02
So it's compounded quarterly.
01:05
So four times per year.
01:08
We're going to raise it to the power of our n, which is 4 times t, the number of years...