00:01
Okay, so first what we're dealing with is compound interest, and i have this compound interest formula.
00:05
What this stands for is a is the amount that i get after a certain amount of compound interest.
00:10
P is my principal or my original starting amount.
00:14
R is going to be my rate, my interest rate, how much it's growing, and this will be written as a decimal.
00:21
N will be the number of times compounded per year, and then t represents the number of years.
00:26
So from all this information, i could just plug in everything into my compound interest formula.
00:32
What i will get will be my principal amount.
00:35
My original starting amount is $8 ,000.
00:38
I see that it's an interest rate compounded annually.
00:43
Annually means how many times a year? once a year, so n will equal one.
00:48
So i'll be divided by one.
00:49
I have one up here.
00:51
And then my interest rate is 5%.
00:53
Convert this to a decimal, divide by 100, or move the decimal.
00:56
Place to place to the right, 0 .05...