00:01
Here we're going to invest some money compounded monthly and we want to find out how much it's worth in the future.
00:05
So i'm going to use the monthly equation that says that a, the amount in the future, is equal to p, the principal, times 1 plus r over n, where that's r is the interest rate, n is the number of times compounded per year, to the nt.
00:19
This is true for any number of compoundings, it's not continuous.
00:23
So a, well that's how much it's going to be worth, that's what we want to know.
00:27
I don't know a, so i'll leave it as a, equals p, that's the initial amount.
00:32
We're investing 9 ,000 into the account.
00:34
So let's just start with 9 ,000 times 1 plus r, that's the interest rate, we're told it's 7 .8 percent, so that's 0 .078, divided by n, the number of times compounded per year...