00:01
So in this problem, we're being asked to find the future value of a series of 15 annual payments, which is why n is equal to 10, of 750, that's our r value, in one year if it's earning 7 % compounded annually.
00:13
Well, let's use our future value formula, which says that fv, the future value, is equal to r, which is how much is getting paid each time, multiplied by 1 plus i, which is the interest, all raised to the n power, the total number of payments, all getting divided by i.
00:30
So let's plug in what we know to find the future value.
00:32
Well, r, that's the amount, how much is getting paid each month, which is 750, times 1 plus i.
00:39
Now remember, i is our interest rate.
00:41
Well, our interest rate is 7%...