00:01
Okay, so if p dollars is deposited with annual interest rate are compounded m times per year, then the amount that can be obtained in our account after t years is given by this formula here, where we have the amount a is equal to our initial value or our principal times 1 plus r over m to the t times m.
00:24
So here we're going to substitute 2p in for a.
00:29
So we have 2p is equal to p times 1 plus r over m to the t times m.
00:40
We divide both sides by p.
00:42
So the p's here both end up canceling out.
00:45
Okay, and then we take the log base 2 of both sides to basically get to our exponent here.
00:54
So if we do that, we have log base 2 of 2.
01:00
That's just 1, right? a log is an exponent.
01:03
So log base 2 of 2 is the exponent.
01:05
If you raise 2 2, think it 2, that's 1...