00:01
So the first thing you need to know is the compound interest formula.
00:08
So i'm just going to attack this that assuming you know that the ending amount, the 5372 is the a value.
00:15
We're starting with 4 ,000.
00:18
A few things that you might need practice with is knowing that the rate being 7%, you have the word percent means divided by a hundred.
00:30
So we have to move the decimal over twice here.
00:32
And the other piece, write this in green is n equals four because of the word quarterly.
00:39
There are four quarters in a dollar, four quarters in a game, four quarts in a gallon, and we don't know what t is.
00:50
So in order to solve this problem, what i would do is divide this 4 ,000 over, cancels that out.
00:58
Now the next thing i would do is actually natural log both sides.
01:02
And you might be sitting there and saying, well, why would you do that? is our independent variables in the exponent? well, the only way to get it out of the exponent is to move it in front of a log of one plus 0 .07 over four.
01:19
And it's, this is still a natural log...