00:01
So for this problem here, we're depositing $1 ,000 into an account that earns 6 % interest compounded annually.
00:07
How much will you have in the account 15 years? so in order to find the amount in 15 years, we need to use the formula up here, where the amount equals the principal times 1 plus r over n to the n times t exponent.
00:22
So p is the principal, which is the amount you deposit.
00:25
So that's going to be $1 ,000.
00:28
R is the rate that is given in the problem.
00:33
So the rate is a percentage.
00:35
So here it says that it is earning 6 % interest, which means that our r is going to be 6%, but written as a decimal.
00:44
So 6 % is the same thing as 0 .06.
00:48
We just take 6 and divide it by 100.
00:51
And then n represents how often it is compounded.
00:56
So it says it's compounded annually, which means n is going to equal 1, because annually just means once per year...