00:01
I'm given a principal money amount of $50 ,000, an interest rate of 10%, compounding period of monthly, which means n is 12, and i want to know how much will be in the account after 10 years.
00:19
So that is my time.
00:22
I'm going to set up my compound interest formula, 50 ,000, that is my principal, 1 plus r, which is 0 .10 over 12, to the nt years.
00:40
I'm going to divide first.
00:42
Point 10 by 12 and add 1.
00:43
I'm going to raise that to the 120th power.
00:47
And then last but not least, i'm going to multiply by 50 ,000.
00:56
You can see that i'm going to wind up with after 10 years, $135 ,352...