00:01
For this problem, we have that the maturity value of an investment is going to be equal to the principal investment plus or times one plus the interest rate divided by the number of times per unit, time unit, that is, the interest is compounded, to the power of that number of times, times t being the number of time units.
00:22
So i'm going to be going under the assumption that we have that this is monthly compounded interest, but that is a rather, arbitrary choice.
00:32
There's more, there has to be more information in the problem to be able to actually, or at least contextually, it's going to depend on what sort of class you're taking and so on.
00:41
But this is the assumption that i'm making.
00:43
So that means that n would be equal to 12 for our purposes here.
00:48
So for part one, we have that v is going to be equal to, and i'll type this out so i can just calculate it right off the bat over here, the 9 ,000, our v value, times 1 .5 .5 .5 .5 .5 .5 .5 .5 .5 plus r, 0 .06, divided by 12, the power of 12 times now three months, that would be 3 over 12.
01:12
So we find that our maturity value is going to be 9 ,135 .68...