00:01
Given the compound interest formula over here, we initially want to save $5 ,000.
00:07
And so let's put that on the left side here.
00:10
So we're kind of back -solving this.
00:12
Normally we're given the principle, but this time we're actually solving for what the principle is.
00:16
So we're going to leave that as a p.
00:19
And then, of course, the one stays plus our interest rate is 7 .5%.
00:26
If we move that over, it's the decimal two places to the left.
00:29
It's going to be .075.
00:31
So that's what we'll put for the r here.
00:35
0 .075.
00:38
And then we're going to divide by the number of times that it's compounded.
00:43
It's daily.
00:43
And so that would be divided by 365.
00:46
If it was monthly, it'd be 12...