00:01
All right, we're in a situation where we have invested 9 ,000 at 7 .3 % quarterly for 3 and a quarter years.
00:08
Then we're going to switch that amount over to an 8 .2 % monthly for the duration of a six -year period, so another 2 and 3 quarter years.
00:17
So we have this formula for compound interest, and we're just going to plug in starting with our first part of our investment.
00:25
So $9 ,000 is our investment.
00:29
So we have 9 ,000 times 1 plus.
00:33
R is the rate written as a decimal value, so 0 .073, divided by the number of times that we're going to do this per period.
00:45
So quarterly means four times.
00:48
So we're going to divide that by four.
00:49
We're also going to put four up here, and then the length of time.
00:54
So that's going to be 3 .25 years.
01:01
Now, we might be curious to how much this is.
01:03
This comes out to be 11 ,385 .44, but it doesn't actually come out to be that.
01:13
There are parts of pennies that we are cutting off if we do that.
01:17
So what we're going to do is we're going to use this as our new principle when we write about the second half of this investment, which is 8 .2 % monthly...