00:02
All right, so with your problem, it is a compound interest problem.
00:06
So our formula would look like this, where we have our total equals our principal amount, which is the starting amount.
00:13
That's what we're going to look for in this equation.
00:15
1 plus r2 over n, and then n times t is right up here at the top.
00:23
Okay? what we're going to look for is our p.
00:30
So we know that we want 1 .6 million or 1 .6 million.
00:34
And then lots of zeros, three more.
00:38
We're looking for our p.
00:39
We have one plus.
00:41
You change your rate of 3 % to a decimal, so 0 .03.
00:46
Our n, it says it's semi -annually, and that means we are going to divide it by 2...