00:01
So here we have a student who wants to save $8 ,000 after five years with a 5 .2 annual interest rate being compounded continuously.
00:09
So basically we had to work backwards here because we're trying to find the principal amount this time instead of the amount after the interest rate.
00:17
So we have this equation a is equal to pert, which is p times e to the r times t power, which is very useful in solving equations like this.
00:27
So we know a, which is 8 ,000, is equal to p, which you're trying to find times e to the r.
00:34
So they're rates.
00:35
So we have 5 .2%.
00:37
We need to convert a decimal.
00:38
All we have to place it backwards.
00:41
So we have 0 .052 times the number of years, which is 5.
00:46
So we have 8 ,000 is equal to p times e.
00:52
0 .052 times 5 is a 0 .26...