00:01
Here we deposited money and we want to find out how much we'll have in the future.
00:05
Since i'm compounding it monthly, i'm going to use the equation that a, what we have in the future, is equal to p, the principal we have now, times 1 plus r, the interest rate, over n.
00:15
Well n is monthly so 12 times per year, to the 12, that's n, times t, which is time.
00:22
That's the equation we're compounded monthly.
00:24
So a is what we have in the future, p, that's 4 ,000, that's what we invest now...