00:01
Okay, the first one i want to compound quarterly.
00:04
So here i will use the formula, the growth formula, pn, p0, 1 plus r over 100 to the end.
00:14
That's this very basic version of the growth formula.
00:18
Now, p0 is the amount in the beginning.
00:22
Here it must double.
00:24
So pn becomes 2 p0.
00:27
1 plus r is the rate of interest which is 11 % per year but i need it per quarter so divide that by 4 to get the rate for every 3 months over 100 and n here is the number of time periods which here will be number of quarters so i want to find n from that equation well the p zeros cancel out and we are left with 2 equals now with a calculator if i divide 11 by 400 and add on the 1 what i get is 1 .0275 power of n and that i can solve by using logs so log of 2 is log 1 .0275 power n but the third law of logs the n goes in front 1 .0275 so n then will equal log of 2 over log 1 .0275.
01:42
So let's work this out.
01:46
Log of 2 divided by log of 1 .0275 becomes 25 .55 quarters.
02:02
Now i want years...