00:01
Okay then here i will use the growth formula, which is this in simplified form.
00:05
Pn is the end amount after end time periods, fee zero is starting amount, r interest rate, and n number of time periods.
00:15
So we're starting off here with $5 ,000 for two years and you're compounding monthly.
00:23
So i want to work out pn, p0 is 5 ,000.
00:30
The rate of interest you are told is 6 % that's per year.
00:35
So per month, i divide 6 by 12, that's the r value, over 100.
00:42
And n is number of time periods.
00:45
We're doing here with two years.
00:47
So two years is 24 months.
00:50
I'm finding p24.
00:53
For the words, the amount of money after 24 months.
00:57
So this i work out, 5 ,000.
01:01
And we get 65 by 12 is 0 .5 over 100.
01:11
0 .005 so 1 .005 power 24 so that i work out on the calculator power 24 times 5 ,000 what i get is 565.
01:32
0 .798...