Learn how long to invest your money compounded continuously

The video tutorial explains how to calculate the number of years needed to grow $100 to $1000 using continuous compounding at an 8% interest rate. It introduces the formula FV = P * e^(RT), defines the variables, and demonstrates solving for time using natural logarithms. The calculation shows it takes approximately 29 years, highlighting the power of compounding.

What is the formula used to calculate the future value when compounding continuously?

Evaluate responses using AI:

OFF

What is the value of 'P' in the context of this problem?

Evaluate responses using AI:

OFF

How do you convert the interest rate from percentage to decimal form?

Evaluate responses using AI:

OFF

How do you isolate the variable 'T' in the equation?

Evaluate responses using AI:

OFF

What is the final answer for the number of years it takes to turn $100 into $1000 at an 8% interest rate?

Evaluate responses using AI:

OFF