00:01
Here we're given a situation where we want to save for education and we're told that we have a certain amount in the future that we need and we're asked how much do we need to invest at a certain given amount to have it ready in 17 years.
00:12
So what i'm going to do is i'm going to say since it's compounding continuously, that's what we're told, i'm going to say that a is equal to p e to the r t.
00:21
Now a, that's how much we're going to have in the future.
00:23
That's how much we want to have after a given amount of time.
00:26
So we're told what that is.
00:27
We're told we want to have 190 ,000.
00:29
So that's a equals p.
00:33
That is the principle, how much we invest now.
00:35
We're not told that, we're asked for it.
00:37
So i'm just going to put p e to the r.
00:40
R is the interest rate.
00:41
We're told it's 10 percent...