
Determine end value of compound interest continuously
Interactive Video
•
Mathematics, Business
•
11th Grade - University
•
Hard
Wayground Content
FREE Resource
The video tutorial explains the concept of continuous compounding using the formula A = P * E^(R*T). It breaks down each component of the formula, including the final amount (A), principal (P), constant (E), interest rate (R), and time (T). The tutorial provides a practical example, calculating the final amount for a $12,000 deposit at an 8% interest rate over 50 years, resulting in $655,177.80. The importance of using a scientific calculator for such calculations is emphasized.
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OPEN ENDED QUESTION
3 mins • 1 pt
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