00:01
Ok, here we use the compound interest formula.
00:04
A is the end amount, p starting amount, 1 plus, r is the interest rate.
00:12
Here is 5 .4 over 100.
00:16
And k is the number of times you compound per year, and kt, number of years.
00:24
So the first part, we are compounding quarterly, which means four times a year, so k is 4.
00:32
So first part then, the end amount will be 12 ,000, my starting amount, 1 plus 5 .4 is the r value, quarterly, so k is 4, so 400, and then 4 times 4 years.
00:55
So what we get is 12 ,000, and then 5 .4 divided by 400 plus the 1 is 1 .0135, 4 times 4, 16...