Thank you from Poland. In Polish YT we do have only 2 videos shortly explaining this topic. I love that after each explaination on given topic you are doing some exercises!
thank you so much sir, but how about the situation where I make monthly contribution and the bank offers 0.12 annual interest rate compounded annually. Can I used the same formula?
should that 6% be converted to an effective rate? i assume that is 6% anual rate compounded monthly. I would like if you clear that up. Thanks for the video
Remember that n is the number of payments (not the number of years). If the payments are made monthly (12 times per year) for 25 years, then there will be a total of 300 payments (i.e. 12 x 25 = 300).
0.041 and .041 mean the same thing (the 0 before the decimal could either be written or not written). So, for example, the fraction 1/2 could be written as either 0.5 or .5
