ok, I am currently studying finance and just want to make sure i have grasped the most important concepts, but as for questions, thats all for now, thankyou
6% is .06, but 1.06 should be thought of as (1+ .06), because we take (1 + .06) and multiply it by our current principal balance to find our new balance after one compounding period. We have our original principal plus 6% of our original principal, and if you apply the distributive property of multiplication to P(1 + .06) you'll see that it's just a compact way of expressing that.
thank you for your input, if you have any knowledge of annuities, do you know if that is embedded in accounting as well or where would you apply annuities in occupations associated with finance, thankyou
@patrickJMT Dear Patrick, can you please make a video on Newton's law of cooling? I searched it on youtube and it was a suggestion with your name next to it but I guess there was no video. (Search Newtons law of cooling p...and patrickjmt pops up next to it)? Thanks
@afreakenracoon c1=c0*(1-k)^^n c1: the value of the car after n years c0: the value of the new car k: interest rate (0.15 cause you have 15%) n: amount of years RU learning for a high school final exam? .)
So lets say the goal accumulated amount is $150,000, but in addition to the yearly compounded interest, you are also making one time a year $1000 deposits. How would that modify the rate?
patrickJMT I appreciate that. The problem I had was Goal accumulated to be 10,000. Initial deposit was 500 with 500 being deposited at the end of each year with 5% compounded annually. I came up with A=(500+500t)(1.05)^t with t being the # of years. I've betting it's wrong though.
thanks for the help! wayy better than my math teacher blabbing on and on D: but i'm still wondering, why is the 1+ there in the 1+ .06 ? (sorry if that sounds stupid, but pleease reply!) thanks :) @patrickJMT
{ (P x i) + P = Pi + P } (Principle x interest) is due after the 1st year Principle is returned after the 1st year Factoring leads to P(1 + i ) in the lesson YOU DO NOT EXPLAIN WHERE YOU AND WHY YOU SAY one (1) curious student will want to know where you get the ONE. Thank you for the lesson Joseph
HELP!!! a car was bought for 25000$, each year it depreciates by 15%... a) write an exponential formula that demostrates the cars value in (n) amount of years after it was purchased/ b) what is the cars value at the end of 3 years c) after how many years will the value of the car be half of the original price? PLZ HELP!!!! THANK YOU!!!
I was hoping for that too.. But I found a formula.. I trying to work on it right now :p Hope it helps :p Quarterly = P (1 + r/4)4 = (quarterly compounding)
Ezekiel 18:17 Withholds his hand from iniquity, takes no interest or profit, obeys my rules, and walks in my statutes; he shall not die for his father's iniquity; he shall surely live.
@@alfonshomac thank you so much this all makes sense now. I was wondering where the hell that 1 came from. When you said he factored it, I immediately went to my white board and started factoring and it all makes sense now. Why didn't he show it in the video though. He completely skipped the step of showing us that he factored it and just introduced the 1 out of no where. No wonder so many people don't understand the formula
the derivation looks like a wonderful proof to me
THANK YOU SIR!
It seems that people earlier won't like others comments much as they use it today..
This is beautiful! lol
@chocopie645 if you multiply a number by 1, it does not change. if you multiply it by 1.06, it gets larger by .06 or 6%
Tnx man... im an igcse student and what you have done helped me by a landslide....
A nice review on compound interest and how the formula is made.
I actually hate math but i'm kind of getting better at it thanks to your vids!!!! I'm actually doing much better in class.. ty for ur help
ok, I am currently studying finance and just want to make sure i have grasped the most important concepts, but as for questions, thats all for now, thankyou
I believe you are right. Although the pattern is obvious, if you wanted to be rigorous, you would have to use induction y
Thank You so much for the help i have had a late math assignment you were the only one who could help me understand thank you.
not yet, probably soon though
patrick, you are eons better than the entirety of James Stewart's math books. That man built a mansion off of confused math students. great video.
6% is .06, but 1.06 should be thought of as (1+ .06), because we take (1 + .06) and multiply it by our current principal balance to find our new balance after one compounding period. We have our original principal plus 6% of our original principal, and if you apply the distributive property of multiplication to P(1 + .06) you'll see that it's just a compact way of expressing that.
thank you - this helps me a great deal with my distance learining program. cheers
Why to multiply principal by 1+ apr. Where this 1 comes from ?
thank you for your input, if you have any knowledge of annuities, do you know if that is embedded in accounting as well or where would you apply annuities in occupations associated with finance, thankyou
@patrickJMT Dear Patrick, can you please make a video on Newton's law of cooling? I searched it on youtube and it was a suggestion with your name next to it but I guess there was no video. (Search Newtons law of cooling p...and patrickjmt pops up next to it)? Thanks
@afreakenracoon c1=c0*(1-k)^^n
c1: the value of the car after n years
c0: the value of the new car
k: interest rate (0.15 cause you have 15%)
n: amount of years
RU learning for a high school final exam? .)
Top Trending Hungary I didn't got!
So lets say the goal accumulated amount is $150,000, but in addition to the yearly compounded interest, you are also making one time a year $1000 deposits. How would that modify the rate?
you mean, what happens if you are making yearly deposits (which is how most people save) ? i can make a video on that
patrickJMT I appreciate that. The problem I had was Goal accumulated to be 10,000. Initial deposit was 500 with 500 being deposited at the end of each year with 5% compounded annually. I came up with A=(500+500t)(1.05)^t with t being the # of years. I've betting it's wrong though.
Very neatly explained. Thanks.
finally I understand the formula, thanks a lot!
thanks for the help! wayy better than my math teacher blabbing on and on D:
but i'm still wondering, why is the 1+ there in the 1+ .06 ?
(sorry if that sounds stupid, but pleease reply!)
thanks :)
@patrickJMT
{ (P x i) + P = Pi + P }
(Principle x interest) is due after the 1st year
Principle is returned after the 1st year
Factoring leads to P(1 + i )
in the lesson YOU DO NOT EXPLAIN WHERE YOU AND WHY YOU SAY one (1)
curious student will want to know where you get the ONE.
Thank you for the lesson
Joseph
hello, out of interest, is this accounting? or university math?, thankyou
This helped me so much!!
Your vids are very helpful :) keep it up!
You save lives man!!!!
that is for CONTINUOUS compounding, not annual
Continuous compounding formula is A = Pe^(rt)
What is this?
Pe^rt
Principal times e to the rate times time power
Do u have video on quater yearly compound, half yearly compound video?
@MetalBassjunkie420 i do not have any videos about annuities although i may make some soon!
Waiting 😶🙄
I learn it in grade 9 or 10, not sure if it is considered accounting.
HELP!!!
a car was bought for 25000$, each year it depreciates by 15%...
a) write an exponential formula that demostrates the cars value in (n) amount of years after it was purchased/
b) what is the cars value at the end of 3 years
c) after how many years will the value of the car be half of the original price?
PLZ HELP!!!! THANK YOU!!!
Thank you.
how do you prove this formula? by induction?
I was hoping for that too.. But I found a formula.. I trying to work on it right now :p Hope it helps :p
Quarterly = P (1 + r/4)4 = (quarterly compounding)
He does say where the one comes from. Watch an earlier video in this playlist and you will see. Think before you post...
thank you.
why, what, how does that "1 +" come from.... why why why is it there
I am really struggling with this please help!! Finals are around the corner and have no clue what it is im doing wrong its driving me NUTS
i came across a question asking for the years, and couldnt really re=arrange the forumula to work out (Y) in this case.
how do i do quarterly?? and daily??
Is my answer true?
@macskap thanks alot this question was really messing with me :P and ya it was for my grade 11 math exam
Ezekiel 18:17
Withholds his hand from iniquity, takes no interest or profit, obeys my rules, and walks in my statutes; he shall not die for his father's iniquity; he shall surely live.
THNQ...................................
it is einstein
wake up mr jordan
yo man take my test tomorrow
did you fail? you probably failed.
You skipped the step from which you got the (1+0.06) factor..You are teaching remember
thanks!!!!!!!!!!!!!!!!
Can someone give me the link to the next video where he explains the APR part?
GRADE 11 HERE HINDI KO PA RIN MAINTINDIHAN ANG LESSON AAAAAAAAAAAAAHHHHHH
Aap kundi bhasha bol rahe hai...???😢😢
@@anithathakur6148 vo tagalong bol rhi hai
haha its kinda annoying that your left handed since we cant see what your writing. thanks for the video though :)
Your math is correct (obviously) but you can't explain properly. Sorry
adarshagarwal2
Sorry, do u know why it's (1+Apr), why do u have to add the 1? Thanks
hahaha, dude i am indian. #NuffSaid
+Johnny g he's factoring out the principal:
total amount = principal + principal * APR
= principal * (1 + APR)
@@alfonshomac thank you so much this all makes sense now. I was wondering where the hell that 1 came from. When you said he factored it, I immediately went to my white board and started factoring and it all makes sense now. Why didn't he show it in the video though. He completely skipped the step of showing us that he factored it and just introduced the 1 out of no where. No wonder so many people don't understand the formula