Determine end value of compound interest continuously

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.

What formula is used to calculate the final amount when interest is compounded continuously?

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What does the variable 'P' represent in the formula for continuous compounding?

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What is the value of 'E' in the context of continuous compounding?

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How is the annual interest rate expressed in the formula for continuous compounding?

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If you deposit $12,000 at an interest rate of 8% compounded continuously for 50 years, what will be the final amount?

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