00:01
Okay, so i've gone ahead and plugged in the formula to basically see what happens when an initial amount is placed into an account.
00:09
And that formula is a equals, it's this, but it's kind of with different letters, a equals p1 plus r over n, which looks familiar, raised to the n -t power.
00:20
I use desmos to get these numbers, and unfortunately, i already use the variables p, r, n, and t, which is why i had to plug in different variables here.
00:30
But basically say this principle, that's the amount you initially put in.
00:34
So i used a and said, hey, initially put in $10 ,000 for me.
00:37
Put in that rate, which is c here, but really are in reality of 5%.
00:43
Compound annually means it only happens once per year where that interest is compounded.
00:47
So that's why it's divided by that one.
00:51
But it happens over 25 years.
00:53
And so then we get our answer to part a...