00:01
In this question, we're going to use the compound interest formula.
00:06
So the total amount, let's remember in the formula, total amount, which is equal to.
00:14
So it is p times 1 plus i to the n.
00:19
So n is the number of years.
00:23
And i is the yearly interest rate.
00:29
And p is the principle.
00:31
Okay, so in the question, the principal value, which is $11 ,500.
00:46
So the interest rate, which is i, 3 .2%, which means 3 .2 divided by 100, which is 0 .032...