00:01
All right, so here i have kind of the setup for this problem.
00:04
We have our information in black.
00:06
They gave us 3 % per year that we're going to grow in this fund and is compounded semi -annually.
00:12
We want it to result in $5 ,000 after about a year.
00:16
So we're going to use the compounding interest formula here.
00:20
A is the final amount.
00:21
P is the starting amount.
00:23
Times 1 plus r is the rate divided by the number of times compounded, raised to the number of times compounded times t.
00:30
And happens twice in this formula.
00:33
3 % rate, that's my r, but i'm going to use 0 .03.
00:37
Semi -annually means i'm cutting this in half, like i'm compounding it twice a year.
00:42
So i'm going to use two for compounded for the number of times it's compounded...