00:01
Okay, here i am compounding twice a year, semi -annually.
00:05
And it's 4 % per year and $10 ,000.
00:09
So i use the growth formula here, which is this in simplified form.
00:14
Pn equals p0, 1 plus r over 100, power of n.
00:22
Where p0 is your starting amount, pn, the end amount, i want to find here, are the rates of interest per year, year, 4%, and n number of time periods.
00:35
Now, if you compound twice a year, the r and the n will change.
00:41
So, for example, here it will be, the first one is five years.
00:49
So let's do pn, the end amount after five years.
00:55
P0 is 10 ,000, starting amount.
00:59
One plus.
01:00
Now r is 4 % per year.
01:03
I need per six months.
01:06
I'm doing it twice a year.
01:08
That's okay.
01:09
Just divide by two.
01:11
It's like 2 % per six months...