00:01
Right, on this situation we know our amount of an investment over a set period of time equals our principal times 1 plus our rate divided by the number of times it's compounded raised to the number of times it's compounded times the number of years.
00:21
In this situation we are looking at an investment of $1 ,000.
00:28
Its interest rate is 8%.
00:34
It didn't say, but i think i found a similar problem on the internet where it's compounded quarterly.
00:42
Okay, so we're going to go with quarterly.
00:45
I'm just going to put a q here as a point of reference.
00:48
If it was monthly you can obviously adapt to whatever your problem is, but we'll use quarterly for this problem.
00:54
We raise it to the 4 times t and we're looking to get $5 ,000 and we're looking to round to the nearest whole number.
01:04
So what we're going to do is first we need to isolate this power.
01:08
So we're going to divide both sides by 1 ,000.
01:11
5 ,000 divided by 1 ,000 is just 5...