00:01
This question says if you deposit $5 ,000 into an account paying 6 % annual interest compounded monthly, how long will it take until it gets to $8 ,000 in the account? so this is the starting, this is the end and this is the annual interest rate.
00:23
To find this, we're going to say this is $8 ,000.
00:34
So $8 ,000 is equal to $5 ,000 open bracket 1 plus the rate 0 .06 divided by 12 months raised to power 12 multiplied by the time.
00:54
We're looking for the time so that's why it's t.
00:56
So this would be equal to $8 ,000 equal to $5 ,000 open bracket.
01:04
Dividing this gives 1 .005 raised to power 12t.
01:11
So this would be 1 .6.
01:14
Dividing this equal to 1 .005 raised to power 12t...