00:03
Here we're looking to compare two different investments.
00:07
So we'll start off with investment a here.
00:09
So we've got p is equal to 1 ,000, t is 5, n is 4, r is 5%, and as a decimal, divide that by 100, that gives us 0 .05, where we have a is equal to p.
00:20
1 add r over n to the power n t.
00:26
And so we can plug in our numbers here, so we have 1 ,000, multiplied by 1 add 0 .05, divided by 4.
00:35
To the power four times five.
00:38
What we end up with is $1 ,282 .4...