00:01
Hi, so we are to calculate the value of mollus deposit.
00:06
Using the given information here, we know that we have compound interest, and remember the formula for compound interest.
00:14
The future value a is equivalent to the principal amount p, multiplied by 1 plus r, which is the rate of interest, and it should be in decimal form over n.
00:25
N is the number of times.
00:27
The interest is compounded per year.
00:29
Then we need to raise this the power of n again and then t would be the time the money is invested for in years so let's write the value of r here first we have 9 .6 percent we need to convert this to decimal so we will divide 100 percent 9 .6 divided by 100 is 0 .096 now n it is stated here that we have compounded monthly and in one year we have 12 months so that means the number of times that the interest will be compounded per year would be 12 times.
01:06
And then t is five years.
01:09
Now let's plug in information that we have the principal deposit is $500.
01:22
$500 multiplied by 1 plus 0 .096 over n, which is equivalent to 12, raised the part of 12, multiplied by 5.
01:31
So solving for this, we'll have 1 .0 .096 divided by 12...