What formula is used to calculate the after value (A) in the text?
Determining the final value of an investment compounded continuously
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Mathematics
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11th Grade - University
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Hard
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The video tutorial explains how to calculate compound interest using the formula A = P * e^(RT). It identifies the variables involved, such as the initial amount (P), rate (R), and time (T), and demonstrates the calculation process using a calculator. The tutorial concludes with the final investment value after 20 years, emphasizing the importance of using the correct order of operations and not rounding intermediate results.
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2 questions
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OPEN ENDED QUESTION
3 mins • 1 pt
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2.
OPEN ENDED QUESTION
3 mins • 1 pt
What is the final amount after 20 years if $5000 is invested at a rate of 7.2%?
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