00:01
That's $1 ,000 that is being deposited in at 6%.
00:05
And we want to look at simple interest to begin with.
00:08
And we know for simple interest, we're going to have for simple interest.
00:13
And i'll leave that in black.
00:14
We're going to take 1 ,000 times .06.
00:18
And so that is going to be $60 every time added in.
00:23
So it's going to be the initial investment plus $60 times, how many years of interest so this is that one thousand sixty and let's just quick do this thousand plus and we have sixty times two and that's going to be eleven twenty and now times five and let me move this table up so i can get all of these on here and i'm just going to do a quick little second entry and the other ones i'm going to do a little different five that's going to be thirteen hundred for 10 that's going to end up being 1 ,600 for 25 years that'll be $2 ,500 for 40 years we're going to be up to 3 ,400 and for 50 years we're up to 4 ,000 now the next is compounded yearly and so compounded yearly, we'll put a line through here.
01:35
And compounded yearly, we'll take the 1000 times all of the money plus 6%.
01:41
And we're going to raise it to the number of years.
01:45
And i'm going to make a little table for this.
01:47
I'm going to put 1 ,000 as y sub 1 in my calculator, and then 1 .06 to the power of x.
01:57
I'm going to start my table at zero and go up by ones.
02:02
And so we know that after one year, this will be, and again, this has rounded off.
02:08
It's still 1 ,060.
02:10
After two years, that's going to be 1 ,124.
02:15
After five years, that's going to round to 1 ,338.
02:20
After 10 years, we're going to be up to 1 ,791.
02:27
For 25 years got to go through my table and it should change i'm going to change that so it's going up by five we'll start at 25 and we'll go up by five and get our table so at 25 that's going to be four thousand two hundred ninety two dollars for 40 years we're up to 10 ,286 and for 50 years we're up to 18 ,420.
02:57
So we definitely can see that that was worth a while of having it be compounded.
03:03
Now let's deal with the monthly.
03:06
And the monthly will end up being the 1 ,000 times 1 plus the 6%.
03:13
We only get that a 12th of that.
03:15
But we get it 12 times per year...