00:01
Okay, the compounding formula is this.
00:03
A of t, that's the amount after t years in the bank, equals p starting amount, 1 plus r over n.
00:16
R is the interest rate in decimal form, n number of compounding periods per year, which here is 12, we're compounding every month, and up here will be n times t or t number of years.
00:33
P, i know, is 600.
00:37
I want to work out a of 1, the amount at the end of one year.
00:43
So, 1 plus the rate is 8%.
00:47
Well, 8%, 0 .08.
00:51
In decimal form, just divide by 100.
00:54
So i get here, 0 .08 divided by 12, because n is the number of compounding periods per year.
01:05
I'm doing it every month, so 12 months in a year, divide by 12...