00:01
We need to find the amount of money in account using the formula given after one month, six months, one year, and 20 years.
00:09
We're given that it's $1 ,000 compounded monthly, and it's at 7%.
00:17
So if we plug in into our equation, we have $1 ,000, 1 plus our rate.
00:25
We've got to change that to a decimal, so it becomes 0 .07.
00:30
Monthly means our n is going to be 12.
00:33
And in one month, this would be our one.
00:37
So when we type that into your calculator, you would get $1 ,05 .83.
00:46
And we just round to the nearest penny.
00:49
For six months, the equation stays exactly the same.
00:53
The only thing that's going to change is that instead of to the one power, it's going to be to the six power...