00:01
Okay, so i have two people making investments, will and henry.
00:07
So both are investing $2 ,000.
00:12
It's principal amounts for both of them.
00:15
Both have interest rates that are close, but not exact.
00:21
Wills is 9%, so that's 0 .09.
00:26
Henry's is 8 .5%, so that's 0 .085.
00:32
Will has semi -annual compounding, so n is 2, and henry has continuous compounding, so that's going to be a different formula altogether.
00:44
We want to know who has more money after 20 years, so we're going to put 20 in for time for both.
00:52
So i'm going to use a compound interest formula to get will's amount.
00:59
So let's see, $2 ,000, 1 plus 0 .09 over 2 to the 2 times 20th power.
01:13
Grab your calculator and let's make sure we follow order of operations...