26 - Compound Interest Formula & Exponential Growth of Money - Part 1 - Calculate Compound Interest
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- Опубликовано: 12 июн 2024
- More Lessons: www.MathAndScience.com
Twitter: / jasongibsonmath
In this lesson, you will learn what compound interest is and how to calculate compound interest. We will first discuss how interest works and how money earned and compounded can lead to an exponential growth of money. We then derive the compound interest formula using a practical example of annual compounding. Next we will extend the formula to handle cases when the compounding is done quarterly. Finally, we will solve problems involving saving money for retirement, investing, savings, debt, principal, and how saving a small amount of money over a long period of time can lead to fantastic growth of money.
65 years later, and now I find the Math teacher I've been looking for.
No - 65 year later you are mature enough to understand those concepts 😂
I agree with you David
True!
The Chinese saying: it's better to learn for 1 year under a good teacher than 100 years under a bad teacher
Ian 66 and finally understand !!!
The question is how much money would I have saved if I had this guy as a math teacher 25 years ago...
I really don't know why I am going to school they Just write down problems without understanding anything
Inn h.c USC
Agreed 👋🥹
How old are please
A staggering amount of money basically
In fact, learning process is in fact governed by Compound Interest, The more you practice (componding), the more you learn. All our knowledge, experience etc, can be viewed from this compound formula. Thank you Sir, your teaching is great.
Well-put! :)
You're such a great tutorial instructor ever.
You are real Math Teacher Makes us to understand properly
Ok, let me explain it this way...as a professor, you have earned a compound interest from everyone appreciation, appreciation.....appreciation. I also have observed w/in 48 minutes that your smart brain and a good heart by taking your time to educate people about debt.
You are truly a great teacher for having me understand the power of compounding.I have very much appreciated all your teaching which I haven’t learned on my younger years.
Thanks, you have the gift of making people understand,
This lesson is much more practical than most classes I have taken in college. Thank you so much!
SIR Mr. The professor Jason!!
You are truly an incredible teacher.
God bless you
We all you
Splendid way of explaining. I never wanted to study Math before but my dad forced me to watch this video and I really enjoyed learning it .Thankyou very much. I am looking forward for more videos and learn better.
Bless your soul sir you are a true and worthy INFLUENCER I realize the entire universe is made of infinite amount of math and knowledge!!
Many years and I was listening to teachers who themselves didn't understand the concept.
Thanks for explaining it thoroughly.
Wondering all those days I didn't search it till this moment 🙉.
keep it up.👍
This teacher / instructor is soo good!! He explains the process step by step in order to helping people understand the theory. I am happy find this Chanel.
I spent almost one hour searching in google for the concept of other than annual compound rates. This was an amazing explanation makes us to understand the concept rather than memorizing it. Thank you so much
This teacher is one of the best I have seen... ( I am almost 78.)
You are an amazing math teacher and really explain the concepts well. Many years ago I did an undergraduate degree in math because it was so easy and fun. I continued my studies with several post-graduate degrees, not in math and have had an amazing very successful career. Now that I am retired, I have gone back to studying math as a hobby; your lessons have been instrumental in re-sparking my interest. Thanks so much!!
Same for me a hobby now.
Thank you so much Jason. I've been looking for a Guru who could explain to me the real meaning of 1 in the formula. I've found one in you. It's not so hard to understand the formula except for the number 1 in the bracket. It makes sense when you explain it as distribution of multiplication over addition. It did not make sense when many teachers say it is hundred percent or....
Keep up the great service.
You are very welcome!
I am not worried about maths and science anymore. All I need is time to watch your video. Thank you again, Sir.
Excellent, clearly explained with just the right amount of reiteration etc. for me!
Your explanation is clear and I like your teaching
Well explained .. thanks to you Legend. Best math teacher ever! I've been following yr tutorial videos. keep up with the good work.. applauding!
Amazing class! Thank you very much.
Greetings from Brazil.
Very clear explanation. Excellent teacher.
I have been following all your works i come across on RUclips and i love them all.
I wish i could have all the lessons from basic level to expert level.
Wow, thank you!
@@MathAndScience good morning Sir..
Any video for bank discount in finance??
I have seen many but yours would be more basic and easy to understand..
Excellent video! I really finally understand compound interest.
very brilliant instructor. Thank you
what a great information you have broken down into an easy way of understanding. bless you
You are an excellent teacher for sure.
After 54 yrs I found a math teacher that I can understand. I was lost on the last part with the log but I will watch a few times like you suggested to see if I get it. Thanks.
Your lessons really help
This professor is brilliant
yes
thanks for the video coz that really gave me a clear idea on how to explain compound interest to my students
The best teacher ever!
You Are Awesome. Perfect Math Teacher 🙌
Thank you for sharing this knowledge to the world sir. You are a genius
Wow, wish they taught this subject of investment in school, like they didn't want us to know, truly amazing teacher you are, great I can now show the grannies what to do 👍👍👍
Great teacher, great lesson.
THANK YOU... SIR...!!!
GREAT TEACHER...!!!
AGAIN...!!!
what a banger of a vid....thouroughly enjoyed this sir...
Very helpful indeed, thank you Sir
It's no longer over my head. thank you !
I am loving his sophisticated in math industry. And this will educated whom has courageous in math for living. Loved its because it's professional skillful.
He is god's gift teacher. I did not learn this subject in my engineering learning..
We were more of parabolas , hyperbolas ellipse and functions up to integro- differential... very hard..
The best teacher in the world
you're a really great teacher God bless you !
Dear Jason , You are amazing teacher
Sir you are really a blessed professor
nicely done, thank you! asking my students to check out your video.
The best explanation on the planet
Wow this video has really helped me a lot.....you the best 👏👏
The truth i knew about compounding interest but never understood it,, you made me understand it even more deeper thanks teacher
Amazing. Even I could understand.
Man, I guess a lot of people just want FAST MONEY these days and not having to work and have patience! Excellent explanation and I love your teaching as well!
Gently Buzzed Podcast l
L
L
L
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I needed to help my grandson with his math and all I had was the equation- no example or explanation and no “n”.
Thank you for explaining so it all makes sense. Didn’t even need to watch the whole thing to get it.
As dumb and effed up as I am with maths... I understood exactly how this eighth wonder of this world.
Wow, this is quite insightful. I wish I knew this 15 years ago.
Thankyou so much for the effort to make us students understand it sir
Wonderful thank you.
super....described from the bottom.... kids will understand all concept, theory and practical applications...super..
Thank you for simplifying compound interest for me
His way of teaching is gorgeous
Wow I really appreciate for your help bcoz I never understand compound interest thank you so much God bless you
GREAT EXPLANATION
very good lesson
Great video
Best explanation on here thankyou
You are the best bro, thanks 😊
Thank you very much!!
Well done
OMG. My respect for you!!!
Well done jason...i can see a future where online learning replaces schools...and if your lessons are anything to guage the future by...the future is bright
Very well explained.Much appreciated.How does it work for compound interest calculated daily? What would be its formula? Thanks.
you would use 365 for daily. Just like 12 for monthly, 4 for quarterly, and 1 for annually.
play video at 32:43
That's powerful!!!
Keep going mr jason
Thank you! I will!
I enjoy this part, of the lesson. I never understood the formula when I was in School. 65 yrs ago
Well said sir ❤❤❤
THANK YOU VERY MUCH!
AWESOME 👍
I love this
Difficult thing but ery easily explained ❤
Do you have examples and calculations of compund exponential growth which including adding a fixed sum every month? You mentioned saving each month, but not much was explained as with the one-time-deposit.
Bravo Mr
Thank you so much
Is there any difference between the interest got by compounding 8% annually and compounding 2% quarterly???
You're amazing
Thank you sir😄
So,, on the 3nd quarter do you use the original principal or the new principal that you earned on quarter 2??
Thank you sir for the perfect explanation l like your way of teaching l hope l will meet you one day
Thank you so much!
Thank you I always have a ton of trouble with Maths but the way you explained it is awesome I finally understand compound interest. Thank you so much your videos are SO helpful.
Well done!!!!
Thanks!
I used to hate maths. I wish I had a teacher like you.
Thanku to explane me .I understand very good
Thank you for your videos 🙏 What banks give 8% interest? I googled it but so many sites open up and I’m not sure which is right. I’m afraid of getting scammed. Which banks in California give 8% interest?
Thanks.
Thank you! It is the 8 th. Wonder!
You are awesome
Thank you so much! I appreciate that! Jason
Can you help me solve this? I have $10,000 invested at 20% interest per year, compounded daily. BUT, in order for me to collect the interest (and reinvest it) I have to pay 40cents (regardless of how many days of interest have accumulated). What is the optimal number of days that I should wait to collect my interest and reinvest it?
It's no wonder this guy was seen in mission control at NASA rather than just teaching in a classroom. He clearly understands what's going on behind the math more than most people. Obviously, the doubling exponential function is y=2^(x). The inverse of that would be log2(y)=x.
Exponential functions will always outgrow linear functions, if you give them enough time. I'm just watching this as a preview for the coolest number around: e.
given a know initial capital, investment period, target balance, what is the compound interest rate required to get me there?
To thank you Sir ☺️