00:01
So in this problem, we're told that $2 ,500 is getting invested at 3 % compounded monthly.
00:06
We want to find the amount that results after a period of two years.
00:10
So because we're investing $2 ,500, that's going to be our principal.
00:15
R is 3%, because that's our rate.
00:17
Our time is two years because that's the period of the time it's going to be invested for.
00:22
And n is going to equal to 12 in this case because it's getting compounded monthly.
00:28
So remember, our compound interest formula is a equals p times the quantity of 1 plus r over n raised to the nt power.
00:39
So remember, a stands for the amount.
00:42
So now we just have to substitute our values in.
00:44
So we're going to have a equals 2 ,500 times the quantity of 1 plus.
00:50
Now remember, r is our rate is a decimal...