Understanding Simple Interest and Compound Interest
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- Опубликовано: 3 мар 2009
- Thanks to all of you who support me on Patreon. You da real mvps! $1 per month helps!! :) / patrickjmt !! Understanding Simple Interest and Compound Interest - In this video I try to make clear the difference between simple interest and compound interest!
yes, i have students that watch these outside of class; it is the reason i started posting all of these videos in the first place.
i wanted to my students to be able to go home and have a resource for when they are actually doing the problems
Well you’re helping me 13 years later. I missed a week of grade 11 math and now this is how I’m getting caught up I’m gonna mail this test now Thankyou so much
Danggg long ago
They’re lucky as can be to have you!
Thank you a lot. I have a police exam coming up and haven't done this since highschool. You taught me more about the processes and differences in one video than the public school system could in however many years. Cheers, mate.
Love the comments at the end. Couldn't agree with you more. My love for mathematics has come to me at 50 years old and it's because of videos like yours. RUclips has enabled me to find teachers such as yourself who have the ability to teach and explain through the beauty of simplification. Thanks!
I can't believe it was this simple, my college course made it seem so much more difficult.
( '__ ' )
Barzillai Blue Exactly😂😂
How's college? Is it like high school (is it better, or just more old people telling you what to do)?
DJ Jaytoven its worse than high school..all teachers who said college is easier were lying..of course it also depends on the course u take..so yeah..good luck🙂
I am doing this in 8th grade...
exactly
why some people always have the problem with others doing well to humanity .....here so many dislikes but for what i dont know ...patrick is a best person on you tube for maths as per me ...please respect the efforts of someone ... he is doing this all for ourself
anushka goyenka aww I love this comment so much. so wholesome. the world needs more people like this
You forgot to mention an extremely easier way to do compound interest.
If you have $10,000
At 6% compound interest
For 5 years
You can do -
10,000 x 1.06 (to the power of 'years' in this case 5)
So 10,000 x 1.06 (to the power 5)
= $13,382
amazing
+AlchemarTwitch you cant do that mate because you have to take into account that the number changes year to year hense why you have to recalculate each compound individually....
how did you get 1.06
shayan abdallah you change 6% into a decimal which becomes 0.06 then you add it to the 100% which equals 1 so 1+0.06=1.06
Chris39 boy Thank you🤓
Learned this the hard way.. THANKS SCHOOL LOANS!!!!!!!!!!!!!!
They actually do teach this in elementary school now. However I don't remember learning this in school so I found it very helpful to not only help kids do their school work but also for me to be able to understand financial terms better. So much appreciated from many generations who have not been able to pass down financial wisdom to their kids. Thanks again I am subscribing in hopes to learn more.
This helped me a lot! My teacher had a hard time explaining this to me but you did in over 30 minutes this was so great!!!
Thanks so much Patrick, I was gone for three days from illness and they learned this without me, without you I would have never understood this. Thanks!
Thank you;
thank you;
thank you!
That was a great explanation. Studying for a finance test and I was having a challenge wrapping my head around the fundamental difference.
Thanks for this, turns out this is actually really simple. I suck at reading through my textbook and taking in information from it, so it is so much easier when someone can explain it to me through spoken words. They seem to stick a lot more, and now my textbook makes complete sense
Thanks for the tutorial. Now that I understand the basics of interest I can commit insurance fraud no problem :)
Schools In the uk teach this from the ages of 12+. Got it on my gcse paper so it was useful to learn^.^
Thank you! It really simplified the whole concept of compound interest. I had an easier time understanding it.
I like how you used snowballing as an example at 12:14. this vid helped me a lot thanks
Thank you for the vid, it helped to simplify for me an assignment I got for this weekend and I agree with you one hundred percent, it IS a shame this is not taught in elementary schools. You're a good man and a smart one!
Thank you so much for this!!! I'm taking an online class for college. And my teacher just collects money for doing nothing. My book was confusing me. But you helped me a lot! Thanks!
This is explained very well, especially when he used (1.06) rather than using the long method. Nice job!
This was extremely helpful thank you very much for uploading this Patrick
I am taking a finance class right now at Penn State Abington
This clears up simple and compound interest for me so much! Thank you!
Thank you so much for sharing your knowledge my teacher at school can't explain at all u made it so easy to follow and my doubts are totally cleared thanx to u
Great job! Very informative
Thnx man!!! This really helped you explained it better than my maths teacher! Keep up the good work.
THANK YOU PATRICK!!! I have a test tomorrow over this and I didn't understand compound interest AT ALL. You're a life saver.
Where are you at now? Just courious :D
@@leutrimh9925 god only knows
This is exactly what I wanted a basic understanding of compound interest without bs and a keep it simple approach. So thumbs up and thanks Patrick.
I try to keep most of my videos are straight forward as possible! Glad I could help
Beеst РРРaydаy Loan sеrviсеeeе => twitter.com/3ac3041c00204e45d/status/809350192776347648 Understanding Simрleеe Interеееst and Comрound Intеrееееst
Gᴇᴛ PPPᴀʏᴅᴀʏ Lᴏᴀɴs Fᴀsᴛ ᴀᴛ: twitter.com/4a610960d85b11290/status/822777246943326208 Understaaаnding Simple Intеrееst аnd Cоoоmроund Interеееest
The only video out there that is not made by an Indian :'D
Ahmed Yasser Gonnah 😂😂
Thank you so much! This helped me so much! I finally understand this.
He Could but he also stated that this video is just to clarify the basic things about interest and how it is counted.
The following video will explain the formula.
Trust me on this.. This is my 1000th patrick's video I've watched.
You saved my ass on the School Certificate :D
Thank you so much!
Well explained! Help with me a lot! Thanks!
I have my maths gcse in england tomorrow, just watched this and it helped me really figure out the deterrence between the two,thankyou very much, great video!
You, sir, are a gentleman and a scholar. Thank you for the helpful videos!
@thepatshowonwp thanks for the kind words. and i am less smart, it's more about being studious and hard working
Very very helpful, you're a genius for making this so simple while everyone else made it difficult
happy to help!
glad to help : )
HELLO i just wanna say your videos are the best i ever came across and i was wondering if u have anything on annuities for financial maths
Thanks!! this helped me a lot for my final exam T_T bless you hooman
this one helps me a lot! thanks man!
Awesome video! Compound interest is so important for achieving long term wealth!
Thank you, you have helped myself and my daughter!
Was reading The Wealthy Barber, made me want to review the math on compound interest. Thanks man
Thanks! Great starting video for a quick explanation!
Thank you very helpful
Do you have more ? ( how to videos, car payments other loans?)
Helped so much thank you!
glad i could help :)
Thank you. Simple and rewarding explanation
this was really helpful man! thanks! may I ask what the 1 was for? is that the time ?
Thank you so much it helped me to understand this chapter in the common core book
DUDE YOUR THE MOST AWESOME ACCOUNTANT TUTOR EVER!!!
very nice and straight to the point thanks
thank you so much i have a maths exam and i didnt quite understand how to do compound interest its really helped me thank u so much
as he is explaining slowly i understood
:)
Thanks! This really helped a lot. :) I have a test on this tomorrow and I had no idea what I was doing before i saw this. :p
Thanks for this tutoring. I'm watching it for my Math Applications class were we are learning about this :D
thank you for your great channel
This is an excellent series. Thank you for these. I am 23 and still have big problems with math. do you find that your own students watch these videos and make use of them outside the classroom? I am hoping to become a teacher although something tells me Social Sciences or English would be a problem to do over RUclips LOL.
Thanks again. Excellent and useful.
THANK YOU THANK YOU THANK YOU A BILLION TIMESS!!! YOU SAVED ME! YOU TEACH WAYY BETTER THAN MY NORMAL TEACHER,I DON'T UNDERSTAND ANY THIING HE SAYS THANK YOU ONCE AGAIN,I WISH YOU WERE MY PERSONAL TUTOR :D
Thanks this video really helped 👍🏼
Great video to build the fundamental concept 🎉
Hello, when you are reading the question, how can you distinguish the difference between what is asked (compound or simple)
any SAT study guide should help... they all cover the same stuff.
some have more review/less actual tests, some books are more practice tests/less review.
just depends on what u feel like u need
Thank you thank you very much I loved this video
thanks dude, helped out a bunch.
Ty! This helped me alot! =D
ok what im wondering is lets say i start saving money now and i put 30 dollars in a savings account and slowly add money to it unil I reach 1000 dollars till the end of the year will the interest be calculated upon the initial (principal) 30 dollars or will i get an interest of the 1000 dollars? what if I have 0 dollars in the savings account for the whole year but put in 5000 dollars on the 31th of December?
Where are we able to find more of your videos on "Financial" topic?
Just a quick tip. I am not sure if all calculators have this. But some do, a simple way to do the compound equation is to do 1.06^5 (to the power of 5) x 10,000. This will give you the same answer Patrick got in the end. Just in case anyone was wondering. Thanks for the video though, it helped.
my pre calc teacher in college does not know how to teach, so i got to your vids for help, thank you!
wow! your this video is very useful, now i finally get what is compound interest and simple interest. Thank you
Great explanation!
Exactly 💯😂 it's a shame they don't teach us in the beginning... anyway thanks alot it's now finally understood
My exam is next week, if I pass... It will be because of you :) THANK YOU SIR... you win over my teacher anyday... he's a foreigner, cant pronounce most of numbers/equations very well. when he says principal... sounds like Prinsipyal with a strong accent or when he says compound interest, sounds like Kompand Iiiinterest... you get the point :D haha so thank you so much!
"Hire an accountant!" Loool good one!
Really, Man, Thank you a lot, now I understand than it was with my teacher
I have an exam tomorrow and this has really helped me out! Thanks
Thanks alot
It helped me soooo much on my tests and homeworks
God bless
@patrickJMT No like is there a faster way to do this like multiply or somthing
this helped me alot!!!
Wow.....you're awesome you explained it very well thank you
THANK YOU SO MUCHHHH!
sir,, do you have videos on "annuity" ?
thanks !
@TheMadJake good luck! i miss london!
where i can invest with compound interest Does every bank have that product?
where are you getting 1.06 from?
Tysm this is very helpful C:
I'm gonna do my SATs pretty soon, any advice on what books to get so that I can study from? I've been out of high school since 1997 so yeah it's been quite a while. I was ok with maths back in High School, but math is something I have to do everyday in order to remember the formulas. Honestly I need to redo everything. Your vids help alot, but a swift reply would embolden me to make an immediate purchase! thanks
Simple: Original deposit + (original deposit * interest * time) = 10,000 + (10,000 * 0.06 * 5 years) = 13,000
Compound : Original deposit *( 1 + interest) ^ time = 10,000 * (1.06) ^ 5 years = 13,382.26
Here are the equations simplified. You just substitute in the values and you're good to go. Also the ^ symbol meant "raised to the power of..." meaning it's an exponent and the * symbol means "times by" so multiplication. If it's not annually then the equation won't work; it will need to be modified to work with weeks, months, etc.... Hope this helps even more
thank you pal helped alot
Thnku thnku very good way to explained very nice I can easily understand nd u solving my problem thnku so much...
Really appreciate it
I'm starting to understand, but how did you get the (1.06)?
That helped alot thank you
were doing this in my honors calc class, and this shit is just BLOWING MY MIND.
Thanks,Pat but suppose you know the A and P and N how do you find interest rate after 4yrs
Liked, commented, subscribed, clicked on the ad for ya' as well :)
Thanks.
Your video was so helpful. Thank you for making it.
I Love You. Thanks So Much!
If I were to add money to a savings account which is getting compound interest, would I get interest on that too?
where did you get 1.06?