Learn how to model an exponential function that is compounded continuously

The video tutorial explains the concept of continuous compounding using the formula A = P * e^(R*T). It details the meaning of each variable: A as the final value, P as the initial value, R as the rate, and T as the time. The tutorial demonstrates solving a problem to find the future value of an investment, emphasizing the importance of following the order of operations and using a calculator for exponentiation. It also highlights the need for exact calculations to avoid rounding errors, especially in financial contexts.

Explain the order of operations that must be followed when calculating the final amount.

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What is the final amount after 15 years if $5000 is deposited at a rate of 7.3% compounded continuously?

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