00:01
Okay, inflation is running at 1 % per month when you deposit $10 ,000 in an actual account that's getting us 8 % per year compounded monthly.
00:12
So we want to find out in constant dollars.
00:16
So, you know, with these two scenarios, we want to consider inflation is just kind of what's, you know, happening with the regular dollar as we're moving forward.
00:27
Whereas our cd or whatever interest we're putting it into has a different formula.
00:34
So first of all, we're going to find what our future money in two years by putting it into the account that earns the 8 % compounded monthly.
00:45
So we'll have our $10 ,000.
00:47
We'll do one plus.
00:49
Now, 8 % is 0 .08.
00:51
And then since we're compounding that monthly, that means 12 times a year.
00:56
So then we'll raise it to the power of 12 times two...