00:01
Okay, so to solve for this problem, you're going to basically use the regular compound interest equation, which is pretty easy.
00:10
It's going to be a equals p times 1 plus r over n, but the power of n times t.
00:20
Now, we want to write down all the variables that we do know, which is p is our principal interest of, or principal amount of 10 ,000, or rate is going to be 045, which originally it was 4 .5%.
00:42
Our n is going to be one, because it's only compounded annually, so it's going to be once a year, and our t is 10 years.
00:55
So what we want to do is just plug in all the variables that we know.
00:59
So we have a equals 10 ,000 times 1 plus 0 .045 .0 .05, the rate divided by the n, which is 1, is going to be just the rate by itself, so we can just write it as it is.
01:20
And the same thing goes for n times t.
01:23
10 times 1 is just 10, so we can just write 10...