Calculating the compound interest of an investment

The video tutorial explains how to calculate compound interest using a formula. It begins by defining key terms such as principal, rate, and time. The compound interest formula is introduced, and its components are explained. The tutorial then provides a step-by-step example of calculating compound interest with specific values, emphasizing the importance of using the correct order of operations when using a calculator. The final result is calculated, and the importance of using the correct currency is noted.

What is the formula for calculating compound interest as described in the text?

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What is the final value after five years as calculated in the text?

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