00:01
Ira at an interest rate of 5 % at the age of 25.
00:06
And it says you deposit $75 each month at the end of each month into the account.
00:12
How much will it contain when you are 65? so we're looking at 40 years later.
00:20
Okay, so let's go ahead and get our, you know what the balance in that account is going to be.
00:25
So we're going to get our regular deposit, which is going to be our 75.
00:29
And then we're going to put that over our interest rate, which is going to be 5%, but we're dealing with that per month.
00:36
So we're going to put 0 .05 over 12.
00:40
Well, let me just put the formula first.
00:42
So let's erase that and get the formula over our interest rate, and then we'll multiply that by 1 plus r to the end, and then that's going to be minus 1 in our parentheses.
00:57
So our deposit is going to be 75.
01:01
My interest rate is going to be .05 over 12 because we're dealing with the monthly.
01:06
So i'm going to put .05 over 12...