00:01
Okay, here i will use the growth formula.
00:03
The basic form is this.
00:04
Pn equals p0, 1 plus r over 100, power of n.
00:12
At the r and n, you adjust to get the compounding.
00:16
So, what i have here then, pn is the end amount, $6 ,000 i want.
00:23
P0 starting amount is $4 ,000, 1 plus.
00:29
R is the interest rate, 7 .5.
00:31
Percent but the compounding quarterly, in other words four times a year, i want the rate per quarter, will divide by four over a hundred.
00:43
And n i want to find, and bear in mind, n is number of quarters.
00:48
The rates and the end, the r in the n match up.
00:53
If you compounding quarterly, n will be quarters, compounding yearly, and it's years.
00:59
So, first step, divide both sides by 4 ,000.
01:04
So 6 ,000...