How to solve a problem when it is compounded continuously

The video tutorial explains continuous compounding interest, starting with an investment of $2,000 at a 10% annual interest rate. It introduces the constant 'e' and its significance in continuous compounding, differentiating it from regular compounding. The tutorial provides a step-by-step guide on using the continuous interest formula and demonstrates how to perform calculations using a calculator, emphasizing the importance of correctly applying 'e' in the formula.

How is the final amount calculated using the continuous interest formula?

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What is the final amount after 20 years of continuous compounding at a 10% interest rate?

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