How to use compound interest to find the final value

The video tutorial explains how to calculate the final value of an investment using the compound interest formula. It breaks down the formula into its components, including principal, interest rate, compounding frequency, and time. The tutorial demonstrates how to apply the formula with specific values, emphasizing the importance of order of operations and accuracy in calculations to avoid errors. The final calculation shows the significant impact of compound interest over time.

What is the total number of compounding periods if the interest is compounded monthly for 40 years?

What is the final amount after investing $1000 at an annual interest rate of 6% compounded monthly for 40 years?