00:01
In this column, we're investing $300 at an interest rate of 4 .5 % per year.
00:05
We want to know what's going to be at the end of 10 years given the different methods.
00:09
So the first one is compounding annually.
00:12
So for the very first part here, we're going to start off by doing 300.
00:16
And then with that one, because it's going to be annually, we're just going to add onto it 0 .045 and then to the 10th power.
00:25
So in the end, this will be 300 times 1 .044.
00:30
And then to the 10th power.
00:33
So that's how we'll evaluate this by just typing that in just like that.
00:36
You could do the one with the plus, but you don't have to and i probably would not recommend it.
00:41
So in the end with money here, we'll do $465 and $89.
00:47
So then for part b, it's now saying semi -annually.
00:51
So what we're going to have to do is the 1 plus r over nt.
00:54
So this will be 300 times one plus the r, which is 0 .045...