00:01
Okay, here we use the formula for interest.
00:04
And is this a of t as the amount after t years will equal p and then 1 plus and r over n power of n t.
00:23
Now, let's fill it in.
00:26
I want to end up with $90 ,000.
00:29
So a of t, the amount after two years is going to be.
00:33
90 ,000 and t is 21 years so 90 ,000 is the m result p i want to find now r is the rate of interest in decimal form so here we have 7 % so it's 0 .07 in decimal form and is the number of times you compound per year and compounding quarterly every three months so we're doing it four times a year so n here is 4 and 4 times t is 21.
01:13
So are then interest rate, decimal form, n number of compounding periods per year, t number of years.
01:23
So what we have then is 90 ,000 equals p...