00:01
All right, i'm gonna zoom up for first things first.
00:03
If it is advised to spend between 70 and 80% of your annual income, we'll see what that ranges if we take 88,000 and multiply by 60% as a decimal and multiply it by 70% as a decimal.
00:19
If you won't fly by 60% it's 52,800 a few multiplied by 70%.
00:24
I believe it's 61,600 double checking.
00:29
And yes, it is $61,600.
00:32
Okay, so that's the range.
00:34
Now, if we're looking at part b, we need to use the continuous compounding formula to find out how much he will have at age 61.
00:42
62.
00:43
Here is that formula in this i use the letter l but you're probably more used to seeing the letter p, um, which is basically the amount of principle.
00:52
However, the amount of money who have.
00:55
And so you take the initial mouth, multiply it by that percent is raised to this power.
01:00
Uh and then this is after one year.
01:03
This is after two years.
01:05
So after one year, he would have $411,769.84 after two years.
01:12
$423,885...