00:01
Okay, here i use the growth formula, which in simplified form is this.
00:05
Pn equals p0, 1 plus r over 100, the power of n.
00:14
That you will find on all formula sheets.
00:17
Now pn is the end amount, which here is 7 ,800.
00:23
So 7 ,800 has to equal p0 starting amount, 5 ,000.
00:31
And then one plus of the rate is 7 .5 % per year, but i'm compounding every three months.
00:43
So four times a year, in other words quarterly.
00:46
So the rate you divide by four to get per quarter over 100.
00:53
Now, n is number of time periods, which here are number of quarters.
00:59
Prepare that in mind.
01:00
So n, i want to find, is number of quarters.
01:03
Quarter years...