00:01
This problem tells us we're investing some amount of money at 8 % compounded quarterly.
00:06
How long will it take that investment to double? so we'll use the formula balance equals principal times 1 plus rate over n to the n times t.
00:21
N standing for number of times compounded per year.
00:26
So we have the rate which is going to be .08 and we have number of, if it's compounded quarterly that means 4 times per year.
00:39
So n will be 4 and you're going to repeat the 4 up here.
00:43
Time is what we're looking for so that's t.
00:47
Now the amount of money.
00:50
So you can start with anything.
00:52
So let's say we start with $100 and we're looking for that to double so that'll be $200 over here.
01:00
The reason you can start with any amount of money is because step one is you're going to divide by that initial amount.
01:07
So when you divide this by 100 and this side by 100 you'll always end up with 2 over there...