00:01
If $30 ,000 is invested in a bank account in an interest of 5 % per year, find the amount in the bank account after 8 years, and we're given four situations.
00:10
In the first three, we're going to use the formula a equals p, 1 plus r over n to the nt.
00:19
3 ,000 is going to be our principal.
00:21
5 % as when we change that to a decimal will be our rate.
00:25
This is going to be our time, so what's going to change in each one of these first three? is the value of n.
00:32
Since annually it's once a year, n is going to equal to one.
00:37
Quarterly means that n is going to equal to four because there's four quarters in a year.
00:42
And since there are 12 months in a year, this means we're going to use n equals 12.
00:47
So our formula in each one of these is going to be a equals 3 ,000, 1 plus 0 .05 over 1 to the 1 times 8.
00:59
This will, will be a equals 3 ,000, 1 plus 0 .05 over 4 to the 4 times 8.
01:09
I'll put that in parentheses...