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This is a video on using solver to solve problems that involve exponentials, finite compounding.
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Here are the formulas for those equations. Here are these equations that you're going to need to have in your calculator.
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In particular, this one right here is the only one that you're definitely going to need in your calculator to watch this video.
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This is the basic exponential. Both forms in one, the B, the growth factor here, or the alternate form with the growth rate constant.
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And I'll show you here how to use both forms in one.
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This is finite compounding. This can actually be done in the TBM solver.
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This is the logistic equation. And there won't be anything in this video on it.
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But you might want to go ahead and enter it in right now for use in the section on logistic equations.
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Okay, so here's the question I'm going to answer.
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The monthly revenue of small businesses is growing exponentially. They started 46,000. It's growing continuously.
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That tells me that the base is going to be E. And at 7% per month, this tells me this is the rate constant.
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And for 14 months, and I notice that the rate and the time are the same unit month and month. That's good.
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That means I don't have to do any conversion between those two.
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So I got to load solver up with this Y0, math, scroll to the top, solver at the bottom.
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And I already loaded this up. You can watch the solver video. I go through this in glory detail.
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But you can scroll all the way to the top. Vars, Yvars function. And then you can choose whatever function you want to load.
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I'm loading Y0 and then press Enter.
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Okay, so here we go. I is the initial value. That's 46,000.
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So I put 46123. And how do I put E in here for the base? It's pretty easy to type the E key.
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Oh, not that one. You type the second E key and press Enter or down rather.
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And it'll put the approximation in. Now I'm going to use the rate constant because it's continuously growing. That's 0.7.
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So 0.07 here. And I'm going to do it for how long? 14 months.
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And I'm going to solve for A, which happens to be the output in my equation. Alpha, solve.
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And there you go. 122,564. 122,564.
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And I'm supposed to round it in here as $$$. So actually I got to go 5 here. 5. Okay, let's see if I got it.
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Yep, I got it. Okay, that's one. Next video will look at a different flavor of this.