00:01
The key to doing this problem is to know that you're compounding continuously.
00:06
When you see those words put together, i'll go ahead and write comp for compounded continuously.
00:12
That's going to be what we call the per formula, p -e to the rt power.
00:18
So when you look at the problem and it says we have $6 ,200.
00:23
I mean, it's right, part a.
00:26
With and all i'm doing is replacing in for the p value 60 ,200, e, make sure you change that rate of 6 % to be 0 .06.
00:37
And then it says after three years.
00:41
Now, depending on, you know, what kind of calculator you have, you might need to put those, like i said, depending on your calculator, i might need to put that in parentheses.
00:54
So that's all i'm doing.
00:55
I should have probably pulled up a calculator app to show you, but you just type in 6200 times e, and maybe in parentheses, 0 .06 times three, close your parentheses, to get an answer of $7 ,422 .75, because it's 0 .746.
01:19
So you bump that 4 up to a 5 right there.
01:23
So then in part b, when it says how long we'll take to get to 9 ,000, well, now you have to plug in 9 ,000 in for a.
01:32
That's how you do part b.
01:35
She still starts with 6 ,200, e to now you don't know the time...