00:01
Okay, so we're going to have two parts of this problem.
00:03
And first is going to be 5 % monthly and 5 % continuous compounding.
00:09
So first we're going to do the monthly part.
00:11
We're going to do, oops, sorry.
00:16
So we're going to start off with the regular compound interest equation, which is a equals p times 1 plus r over n by the power of n times t.
00:27
And we're just going to plug in everything you know.
00:30
But before we do that, we do want to compress.
00:33
Our equation so we can solve for p so after that it's going to be p equals a 1 plus r over n and as i said before in some lessons once you switch the p and the a your right your n up here is going to have to switch the sign so it would be negative n times t so after that we're plugging every single thing that we know so we don't know what p is we know that our a is 10 ,000 times 1 plus our rate is 5%, so 0 .05 over 12 because it's monthly.
01:13
And then we're going to have negative 12 times 20.
01:17
So after that, you're going to have p of equals to 10 ,000 times we're going to have 1 .00416 by the power of negative 240...