00:01
So in this problem, we're given this formula that allows us to find the amount that is going to be saved, where p is the number that's initially invested, t is the amount of time in years, and r is the rate.
00:13
So in this particular problem, we're told that she's going to deposit $250 into an account.
00:19
So that means p is equal to 250.
00:22
We're told the percentage is 5%.
00:24
So that means r is equal to 5%.
00:26
But remember, we need 5 % as a decimal.
00:28
So we move it two places to the left, which means it would be 0 .05.
00:33
And we want to know how much she is going to accumulate after 27 years.
00:38
So t will equal the 27.
00:40
So now all we need to do is substitute these values into our formula.
00:44
So if s equals p, which is 250, bracket, and then we'll have 1 plus 0 .05 divided by 12, all raised to the 12 times t power, so 12 times 27...