00:01
How long is it going to take your money double if you're getting 3 % compounded quarterly? so when we use the formula for our compounding interest, what we can do is say our principal is going to be 1, therefore our accumulated amount would double to 2.
00:16
So that means we just say 1 plus our interest rate .03.
00:21
Quarterly means we're looking for 4 in value of n, and then we're looking for our value of t.
00:27
So we can clean this up to be one point, let's see what this is going to be, 075 to the 4t.
00:41
So since i have my variable in the exponent, i need to take the natural log of both sides.
00:46
So the natural log of 2 equals the natural log of this value, which means the natural log of 2 is going to be 4 times the natural log of 1 .0075.
01:00
And i can divide by natural log of 1 .0075 on both sides and i'll have my answer.
01:08
So i'll see what that's going to be...