00:01
Okay, so for this question, we're going to use our compound amount formula.
00:05
So that is the fall line.
00:14
And we're asked to find our interest rate.
00:17
So we're solving for r in this case.
00:21
Okay, so let's start by plugging in what we know.
00:24
So we're given that we have a starting value, which is our principle of 80 ,000, and it increases to 11 ,672 .12.
00:38
We're solving for our rates.
00:39
And then we're compounding quarterlays, so our m value is four, and that's for eight years.
00:47
So we have four times eight, that is 32.
00:51
Okay, now let's solve for r...