Applying compound interest to find the final value of a deposit over the years

The video tutorial explains how to calculate compound interest for an initial amount of $12,000 with an 8% annual interest rate compounded biweekly over 50 years. It introduces the compound interest formula, discusses the importance of compounding frequency, and provides a detailed step-by-step calculation. The tutorial also emphasizes the significance of rounding and accuracy in calculations.

What is the principal amount used in the compound interest problem?

• $10,000

• $12,000

• $15,000

• $20,000

How is the annual interest rate expressed in the formula?

• As a fraction

• As a whole number

• As a decimal

• As a percentage

How many times is the interest compounded per year in this problem?

• 12 times

• 52 times

• 24 times

• 26 times

What is the first step in applying the order of operations to solve the compound interest equation?

• Multiply the principal by the interest rate

• Add 1 to the interest rate divided by the number of compounding periods

• Raise the result to the power of the number of compounding periods times the number of years

• Subtract the principal from the final amount

What is the result of raising 1.00308 to the power of 1300?

• 54.48

• 50.00

• 70.00

• 60.00

Why is it important not to round intermediate values during calculations?

• To make calculations faster

• To avoid using a calculator

• To ensure accuracy in the final result

• To simplify the process

What is the corrected final amount without rounding?

• $600,000.00

• $700,000.00

• $651,166.52

• $653,768.37