Learn how to model an exponential function that is compounded continuously

The video tutorial explains the concept of continuous compounding using the formula A = P * e^(R*T). It details the meaning of each variable: A as the final value, P as the initial value, R as the rate, and T as the time. The tutorial demonstrates solving a problem to find the future value of an investment, emphasizing the importance of following the order of operations and using a calculator for exponentiation. It also highlights the need for exact calculations to avoid rounding errors, especially in financial contexts.

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