Learn how to determine the initial amount of money to invest compounded continuously

The video tutorial explains how to calculate the initial amount needed to earn $10,000 at a 6% interest rate compounded continuously over 30 years. It emphasizes the importance of using the correct formula for continuous compounding, which involves the exponential constant E. The tutorial provides a step-by-step solution, simplifying the interest rate and time, and demonstrates how to use a calculator to find the initial amount, which is approximately $1652.99.

Explain the significance of using the number E in the compound interest formula.

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What is the approximate initial amount needed to earn $10,000 over 30 years at 6% interest compounded continuously?

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