00:01
Hi, in this question, first given that the principal equals $25800 and the rate of interest or equals 3 .5 % which is equal to 3 .5 divided by 100 which is equal to 0 .035.
00:18
Next, also given that it is compounding period tn equals 12 and n is 1 compounded annually.
00:27
So, we have to find the future value.
00:29
We know that a equals p into 1 plus r by n the whole power n into t.
00:35
On substituting all the known values in this, then we get 25800 into 1 plus 0 .035 divided by 1 the whole power 12.
00:46
On further simplify which is equal to $38985 .57.
00:55
Next, move on to second question.
00:58
Here, given that the principal amount $32900 rate of interest or equals 1 .25 % and tn equals 24.
01:10
On substituting all the known values in the above formula, then we get a equals 32900 into 1 plus 1 .25 divided by 100 becomes 0 .0125 divided by 2 the whole power 24...