00:01
Ok, here we will use the compound interest formula as you will find on all formula sheets.
00:07
A is the end amount, p starting amount, 1 plus r the interest rate here 8 .6 over 100, k is number of times you compound per year, here it's twice a year, semi -annually, so k is 2, up here is k, t number of years.
00:28
So a is 4767, that's the end amount, p is 3000, starting amount, 1 plus, 8 .6 is the r value, k is 2, so it's 200, compounding twice a year, here will be 2, t.
00:49
So from that i want to work out the value of t.
00:53
So i have 4767 divided by 3000 equals 1 point, and then 8 .6 divided by 200, 1 .043 power of 2t.
01:12
So on the left we have 1 .589, on the right 1 .043 power of 2t...