00:01
Hi, so i'm going to help you solve this two -question problem, and i'm going to show you the steps, which is a little complex, but i'll explain it through.
00:08
So we're going to start with our simple compound interest equation, which is a equals p times 1 plus r over n by the power of n times t.
00:21
And we're just, since it's going to be doubled by the investment they put in, it's going to be 2p equals p 1 times 1 plus, which is just, your r which is 0 .08 over times or by the power of 12 so what you want to do is you want to start by dividing this entire equation by log so you're bringing down the exponent so then you'll have log 2 equals 12t log and once you do this middle part right here you're going to get 1 .00 667.
01:13
That's what we're doing right now.
01:17
So next, you're going to basically isolate in cell for t, which is the only missing variable that we have.
01:23
So you're going to do t equals log 2 over 12 log times 1 .00667.
01:36
And once you solve for that, put it on the calculator, you're going to get 8 .693 years.
01:44
Remember that t's is always going to be classified as years.
01:50
It's never going to be months or seconds.
01:52
It's always going to be years in this scenario...