Determining the final value of an investment compounded continuously

Determining the final value of an investment compounded continuously

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Interactive Video

Mathematics

11th Grade - University

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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OPEN ENDED QUESTION

3 mins • 1 pt

What new insight or understanding did you gain from this video?

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