00:01
So for both of these, we will use the formula a equal p times 1 plus r over n, and then we would take exponents n times t.
00:16
So your p is your payment, r is the rate, and is the number compounded, so it was like quarterly and monthly for these two questions, and t is time, which would be measured in years.
00:37
So for a, p would be 12 ,500, and is four for quarterly.
00:45
R, we need to change the percent to a decimal, so this will be 0 .08, and t is 15, because we have 15 years.
00:52
So now we can just put all these numbers in that equation, so it's 12 ,500 times 1 plus 0 .08 over 4, and then we would times that 4 by 15 in the exponent.
01:15
So for this one, a is equal to $41 ,012.
01:22
And 89 cents.
01:24
So there is your answer for part a...