00:01
In the given question we have been given that there is some sort of initial investment that is being made and the amount is of 1000.
00:10
So this 1000 investment is going to be it's three times that means 3000 with the rate of interest that is the rate of interest we have been given 8 % compounded annually now what we need to do is we need to find out the time that is near about years in which this amount is going to triple itself so what we will be doing is we will be using the future value of a sum formula to find out the number of years so we know that future value of a sum or we can say of amount is equals to its present value times 1 plus r to the power n where this r refers to rate of interest and and refers to the time period for which the investment is being held.
01:20
Now in our question, the future value is said to be three times of 1000.
01:26
That is the initial deposit.
01:28
So three times of initial deposit that is 1 ,000 is equals to 3 ,000.
01:33
So this is our future value that we will be having after.
01:37
And years because we don't know the number of years and we have the rate of interest given to be 8 % that is 0 .08 and we have present value to be 1000 that is the initial investment that we are making so what we will do we will be using this future value of a amount formula to find out the value of n so we have the respective values so we can directly write here future value is equal to present value times 1 plus r to the power n putting the values we have future value of 3 ,000 present value of 1 ,000 times 1 plus rate of interest is 0 .08 to the power n now transferring this 1 ,000 to its left hand side we will be getting 3 ,000 divided by 1000 equals to 1 .08 to the power n so we have 3 ,000 equals 3 ,000 to 1 .08 to the power n...