00:01
Brad wants to have $10 ,867 available as a down payment for a house in four years.
00:15
How much must he deposit now at 9 .2 % in compounded interest monthly in order to reach that goal? round the final answer to the nearest cent.
00:28
So the formula that we're going to use is going to be p.
00:35
So our principal is going to be equal to our a, so our final, divided by 1 plus our rate divided by n, which is how it's compounded, raised to the power of the compound in time.
01:13
So we're going to go ahead and plug everything in.
01:18
So p equals 10 ,867 .00 divided by 1 plus.
01:40
So since this is a percentage, easiest way to look at a percentage is it is this number over 100.
01:54
So all i have to do is move this decimal two places.
02:07
So plus 0 .092 divided by 12 raised to 12 multiplied by 4...