00:01
Alright, this problem is a continuously compounding interest problem.
00:05
So we're going to use this formula, a equals p e to the r t power.
00:10
P is what they consider to be the principal.
00:13
It's where you begin.
00:14
It's the initial amount.
00:20
E is the number 2 .718281828.
00:25
R represents your rate and make sure that you're writing your rate in decimals.
00:29
So whatever percentage they give you, you got to convert it to a decimal.
00:35
And t is your time and make sure that your time is always in years.
00:39
When you're doing money problems, time has to be in years.
00:43
And a is that final amount.
00:45
Sometimes they call it a future value.
00:47
What will that be at the end of your whatever, however many years they want? alright, so suppose you invest $6 ,000.
00:55
So that's going to be your initial investment, right? 6 ,000 at a rate of point, i lied, 2 .75%.
01:03
So 0 .0275 is going to be the r value.
01:09
And write an equation for the amount after t years...