How can the PHP pow() function be utilized effectively in scenarios involving exponents, such as in financial calculations?

When dealing with financial calculations that involve exponents, the PHP pow() function can be utilized effectively to raise a number to a specified power. This function can be used to calculate compound interest, future values, present values, and other financial calculations that involve exponential growth or decay. 

// Calculate the future value of an investment with compound interest
$principal = 1000;
$rate = 0.05;
$years = 5;

$future_value = $principal * pow(1 + $rate, $years);

echo "The future value of the investment after 5 years is: $" . number_format($future_value, 2);

Keywords

PHP pow() function exponents financial calculations utilization

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