00:01
So here we want to use the compound interest formulas to solve the equation for each of the different scenarios.
00:07
And the first one is semi -annually.
00:11
So i'm going to say a equals p, which is our initial amount, so 10 ,000, times 1 plus the rate as a decimal.
00:26
Now the rate is 4%, so that's going to be 0 .04.
00:29
Semi -annually is going to be twice a year, raised to the 2, times the number of years, which is 7.
00:45
I'm going to go ahead and type that into my calculator.
01:01
And that accumulates to $13 ,194 .79.
01:14
Now for b, it wants us to do the same thing but quarterly...