00:01
Okay, we can earn 6 % on an investment.
00:04
So when we put that into our equations, we'll be using 0 .06 because we need to use its decimal approximation.
00:11
So we can compound daily, which means that our end value would be 365, and then we're given four different scenarios.
00:21
So our first scenario, considering that we have eight years for this investment, if we have 20 ,000 now, we can find out our future value by taking that 20 ,000 and multiplying it by the 1 plus or 0 .06 divided by 365 and that will be raised to 365 times 8 given 8 years.
00:43
That gives us a final value of $32 ,320 .21 cents.
00:50
Now with b, it says that we have 30 ,000 after eight years.
00:54
So we can't do anything with it because it's at the 8 your mark so it's just the 30 ,000.
00:59
Now our c scenario we're going to put in 8 ,000 now, so that means it's going to have eight years to accumulate, and then we're going to put another 20 ,000 in, which is like the same equation, but now we only have four years to accumulate because it's really eight minus the four given, but it still ends up being a four year...