00:01
Alright, so we're compounding it annually with a percentage rate of 2 .5 percent.
00:05
So we deposit $10 ,000 and then at the end of the year, we multiply it by 1 .025 because it's compounded annually.
00:19
Move the decimal place twice, that's why you get 0 .025.
00:23
Multiply by the 1 to keep the original amount and you end up with $10 ,250.
00:32
Deposit another $10 ,000 so you get $20 ,250.
00:38
That's your second deposit.
00:40
I would like to know it at the seventh.
00:43
I just kept tracking this in the calculator so that i never like rounded or anything.
00:48
I went with whatever full number i got.
00:50
Multiply by 1 .025 so you get $20 ,756.
00:58
A bunch of stuff.
00:59
Add $10 ,000.
01:02
That's my third one.
01:05
Now we just have to keep going back and forth because multiplying by 1 .025 is an exponential function.
01:11
Adding the $10 ,000 is a linear function.
01:14
So you can't just write that equation very easily...