Determine the final value for Compound interest problems

The video tutorial explains the concept of continuous compounding interest using the PERT formula. It starts by introducing different compounding intervals and focuses on continuous compounding, which involves the mathematical constant E. The tutorial walks through the steps of calculating the future value of an investment using the PERT formula, emphasizing the importance of simplifying the exponent first. The example used involves a $5000 investment at an 8% annual interest rate over 15 years, resulting in a significant increase in value. The tutorial concludes by highlighting the ease of using a calculator for such computations.

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

Evaluate responses using AI:

OFF