Compound Interest Explained
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- Опубликовано: 8 сен 2024
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Daddy ❤❤❤
@@elizabethmichellefaires8337 🤨📸
@@AxArchives yea
Why the hell did y like my comment
Actually, it would be valued pretty low because pennies arent in circulation anymore (referring to canada only)
As a wise man I would have 1 million dollars because there is no such thing as a magic penny
And there is no such thing as a man who would offer you a million dollars or a magic penny
@@MrPezos not a magic penny, but have you heard of Mr. Beast?
@@theonethatgotindwae2954 he's not gonna give it to you for free. You gotta do something that he can upload as content and it has to be something really really entertaining
@@MrPezos yeah, give the milion and learn them how to invest the money
@@RoyalLegend1000 couldn't he just learn how to invest himself? 😭💀
"Compound Interest is the most powerful force in the Universe" -- Einstein
the banks really got their money's worth on that one.
Stop quoting random shit I didn't say - Albert einstein
this isn'T compounding interest though
“You can just put some genius’s name after what you were gonna say anyway” -Alan Turing
“Bruh” -Albert Einstein
Me, losing the penny on day 1: 💀
💀
💀
literally 😢
I would keep in a safe place.
☠️😿
imagine going to buy a PS5 and the shopkeeper be counting all the pennies 💀
Taking a eternity 💀
Can’t you see he gave him cash?😂
Umm, he said the value doubles.
-🤓
@@Ron_edits5 yeah 😂but there's no magic penny
@@neutron9428well actually in the video he demonstrates 2 pennies being doubled as he says that, implying that the penny doubles as well-🤓
I ditched maths Homework to watch yt shorts but God had other plans.
same lol
Lol
Its false maths btw
@@syd_sohail it's correct. The math is 1x2x2x2.... Until you get to 30 digits which is basically 1x2²⁹. The product is 536,870,912 pennies. It takes 100 pennies to make a dollar so we get 536,879,912/100 and out final answer is 5.36million dollars
Same 😂
I stared him straight in the face and said, “wait, doesn’t a month have 28 days?”
“no ma’am. That’s February.” 💀
Every month has 28 days
Gurl today is October 31
@@Karataratta it was November 1st for me 22hours ago when you commented lmao
Every month there's 30-31 days except February because it only has 28 day and 29 in leap year
@@zattlahabibi1137 I’m sorry what?
February:I’m bout to end this man’s whole career
I think you forgot about the fact that when February would end, the magic penny would already have duplicated itself enough times to be more than $1 mil.
@@everyonesplace1267It would be like 1,350,000
Leap years:
😂😂
Even then it still gets a lil more then 1 mil
There's no way I'm not gonna loose that penny after the second day
Don't worry by loosing it you escape the TAX MAN
just put that shit in your drawer..
I'm the type of person to look at the penny and say, "is anyone going to eat that?"
You win
You said 1 month and said its been 50 days!! Thats a long month
I smell pennies
Mmmm
I’m the type of person to look at the billion dollars and say, “Is anyone going to eat that?”
Eating is so basic.
We'll IM the type of person to eat the billion dollars and look, "is anyone going to say that"?
With my luck he’d give me this on february 💀
You'd still have 1.34 M istead of just 1, bro
@@Titaniton I mean yeah but it’s the shortest month that was the point of the joke
@@Titaniton u ruined it;-;
D
@@Titaniton you really ruined it
It’s December, that means 31 days worth of doubling 😈
so you have 10 mil
10.6 million
L E A P Y E A R
Yeay
@@commenter2448 🤨
“On the second day 2 cents and on the second day 4 cents”
Underrated comment you are a gigachad
I didn't even notice until I was listening for it
k why ess @@funwithfahil2439
I didn’t know :0
The problem is it depends on where you're getting this penny from if a magic genie offers you the penny I'll take the million 😅 All he said was the penny doubles in value every day day one you get an extra penny day. Two you get an extra penny and you continue that on for a month he never said anything about the money that you get from the previous day doubles in value he simply said Penny......
“Oh no! I’m so sad with my free million dollars.”
i would also be upset if i missed out on an extra 4 mil
Except a magical penny does not exist
that free million will be only couple hundred thousand is we include taxes
@@henrynguyen8227 Actually, around $500-$700K depending on which state you live in, plus withholdings and write-offs you have at the end of the tax year.
@@devanjohnson3560 except a random man in a suit would not walk up to you and ask you this question nor would he give you a mill dollars not even mr beast you would have to waste your time doing his challenges
Exponential growth is the real definition of "well that escalated quickly"
The cashier watching me slowly put out 500$ worth of pennies: 🗿
It can’t have been the penny that doubles every day, but the value of that specific penny.
So technically you would be right in saying that you gave the cashier 500$ worth of pennies, but it would still only be one physical penny.
Lmao🙏💀
IRS:"let we introduce ourselves "
Don’t you just love 100% compound interest?
In this situation yes xD
Lmfao 🎉🎉🎉
I love genies aswell
im so glad i learned this in middle school because i dont think in 30 days youd ever get 5.3 million
He said 2nd day twice
If exponential growth blows your mind, you have a lot to learn.
Wdym?
@@emperorsagegaming4921 MATH
id rather be alive bro
You know googology too 😉….. tetration
Their are 8700quadrillion atoms in earth but 10⁹⁸ in the universe... This shows the difference
For convince 1000 trillion = 1 quadrillion
Now if its 31 days! 10.6m
now if it’s 32 days! 21.2m
@@Bxrben_Dr1p 21.2*
@@jenodreams 2³¹ is 2,147,483,648.
So 2³¹ / 100 = 21.4m
(You need to use 31 for day 32 because the formula would be 1*2^(n-1) )
@@jenodreams oops… thanks for the correction
@@moonmountain_ oh no, its retarded
The doubles "IN VALUE" part is also important because to manufacture a penny it cost more than a penny per piece.
if you miss all of the video and try to be smart this is the conclusion you turn to
When patience really is key:
on the second day its two cents and then on the second day its 4 cents 💀
Bro there is only one second day💀
@@hxplays14 watch it again he says second day twice
@@hxplays14 he said on the second day its two cents and on the second day its four cents
@@hxplays14 special Ed
Lol
f in the chat for the people that thought you get another Penny every day
"The duplicates also duplicate?!?!"
@@crumby46 no meant as in a sence no pun intended day 1 = 1 penny day 2 = 2 penny day 3 = 3 pennya
@@KROME_MUSIC Yeah but the way he worded it makes it seem like the one penny doubles every day leaving you with around 30 pennies
the fact nobodys talking abt the penny magically turned into dollars-
wdym lol, why would you keep counting in pennies once you've crossed 100?
Im confused about that two. They said a *penny* that doubles in value. It shouldn’t be doubling the amount.
@@idle_shuhua00 It's the same thing though. A penny that doubles in value would be worth two pennies tomorrow and 4 pennies the day after. A dollar today would be 2 tomorrow as 100 pennies turned into 200.(Not American, don't actually know if 100 pennies is a dollar, but assuming it is from the decimal places in the video.)
@@chrisj1319 it is
[sigh] OK, fine, on day 30, you have 536,870,912 pennies
This is the effect of compound interest if your rate is 100%
Not even, if your daily rate is 100%... not even yearly lol.
And his own words fucked his math up. A magic penny that doubled every day. So penny is now 2 pennies. The new penny isn't magic, it doesn't double... day 3 you have 3 pennies...
@@randomguy1371 That’s simple interest, not compound interest.
@@FlopNonStop okay? What part of this magic penny is compound interest? If he Said he gave you a piece of paper that became worth 2x every day, that's compound interest. No matter how you slice a penny, it's a penny.
@@randomguy1371 bro it doubles the amount of the day prior
@@galactik6742 where in his words did it say this
For anyone wondering the exact amounts each day.
Day 1: .01
Day 2: .02
Day 3: .04
Day 4: .08
Day 5: .16
Day 6: .32
Day 7: .64
Day 8: 1.28
Day 9: 2.56
Day 10: 5.12
Day 11: 10.24
Day 12: 20.48
Day 13: 40.96
Day 14: 81.92
Day 15: 163. 84
Day 16: 327.68
Day 17: 655.36
Day 18: 1,310.72
Day 19: 2,621.44
Day 20: 5,242.88
Day 21: 10,485.76
Day 22: 20,971.52
Day 23: 41,943.04
Day 24: 838,86.08
Day 25: 167,772.16
Day 26: 335,544.32
Day 27: 671,088.64
Day 28: 1,342,177.28
Day 29: 2,684,354.56
Day 30: 5,368,709.12
Day 31: 10,737,418.24
41k to 800K?
@@aurixel2179 whoops, misplaced the comma XD
I'd get stuck with February...non leap year. Lol
The thing is that if the penny gets double by like... becoming 2 identical coins, you would not have room to hold all of them in one month. And if you trade the pennies for paper money, what you receive can not double.
The brutality of debt at it's finest.
Yup. And thats why, say it with me kids, never take a payday loan, and loan sharks are scum of the earth.
Million like how would that happened
Ah yes what a useful video I can totally use in real life!
haha true
having 5 million pennies seems useful aswell. The only thing you could do with that is flotting the zinc market
what you can understand is that exponential grows VERY fast, maybe you will still ask me what you should do with this information, i don't know but i like math
It’s compound intrest. Very useful to know in real life
It's gp. Geometric progression. Compund interest is an application of geometric progression which u learn in high school
The way you worded that I thought only the magic penny doubles so you would have 30 penny's at the end of the month 💀
He didn’t word it weird you just didn’t understand
@@jackieandthesheetmetals damn you sound like a teacher
@@jackieandthesheetmetals you're wrong.
Same man
@@the_babbleboom you're wrong
Never underestimate the power of double it and give it to the next person
when you live in canada and you can't use pennies
Same
lets go canada ftw
Same
The same in my country phillipines
Magic nickel
why is nobody talking about how annoying it would be to have 5.3 million pennies?
Edit: 530 million pennies
Second edit: Mom I’m famous!
Well, the dude says the penny doubles in value, which leads me to believe you will only ever have ONE "penny".
But then again, that's not what the video animation shows us....
It’s also 5.3 million dollars not pennies
@mr_unknown909 That’s actually correct, I’m proud of you. 👍
@@mr_unknown9098 he said the PENNIES double every day
@@SchizoprenicPotato no he didnt
Me who already knowed but forgot and thought it gives 0,2 a day: 💀
You mean knew?
knowed
You also forgot English apparently
@@GhostlyGeo not everyone has english as their first language
@@sourcewatcher232 English isn't my first language, but I'm pretty good at it.
You just need to study more.
The problem with choosing the magic penny is that you don't know if you'll still be alive tomorrow or not. Like what if a die today.
So therefore, the million dollars is a safer option, while the penny is a big risk with a big reward.
Bro why you all assuming you boutta die
@@bloopletank2491 why are you assuming that you would live to see tomorrow.
@@umersentertainmentfactory.7343 cause it is statistically very unlikely i am going to die
@@bloopletank2491 chances are low. But never 0.
@@umersentertainmentfactory.7343 chances of you dying before you get to spend the 1 million is also low. Or the chances that you'll suddenly need more than 1 million
The actual number would be 10.7 million (you just do 0.01 X 2 to the power of 30, which is how you work out compound interest) but it depends on how many days you count as a month in this question.
Going with 0.1x2x2x2
And do the times 2 30 times it would end up with 53,687,091.2
@@MakiRaiden if you're doing 0.1 the number would be 107,374,182.4 just do 0.1 x 2 to the power of 30
@@VisertanEdith makes sense but your first number that you replied with is wrong because it won't double on the first day so it would be 53,687,091.2 but ye your number is more correct I was just saying mathematically doubling it would give that number but by compound interest it would be 10.7M
In the end it's all just an understanding with stupid forms of explanation, hope you have a good day brother
I was gonna put the need emoji, but this is actual facts.
How many nerds are in here💀
"and here's your 5.3 million"
A month of waiting: am I nothing to you?
If you get 1 penny, that doubles it's cost every day, at the end of month you will be 5 million (or w/e exact summ is) dollars in debt. Thats how banks works.
Magic penny wouldn't work cause after you give in the penny, it'll double to whoever you give it. Once it gets to the bank you get inflation and ruins the value of your coin or the penny is discontinued as a coin.
Therefore the penny is the worst option
Me wishing for the penny on month with 31 days: I am outside your league, mortal.
I was thinking the same thing
" 10,000,000 dollars richer today " 😎
@@Yami_gd 5 million
I learned this in school and I don’t understand. But after watching this video I leaned more about compound interest then in my entire school year
Me wishing for the penny on February:my goals are beyond your understandings
5.300billion
Actually on 28 days it would still be 1.34M so you would still be profitable
1 million today, my live could end any second
Give it to ur family
U alive?
won a lot of bar drinks with that bet for the last 50 years.
Idk if a free drink is worth having to explain that math to a drunk person
Bro is a straight up NPC. I’ve seen countless videos throughout my entire life following this same concept and format
Imagine taking the penny,and ending up with 30 pennies at the end of the month.
Clearly you’re not good at math.. if it doubles everyday it’s not 30 pennies at the end…
@@han615 I think they are talking about only 1 penny that doubles but that doubled penny doesn't have that property. You have your single penny day 1. Day 2 you have 2 pennies day 3 you would have 3 pennies because only that first penny doubled each day
@@famminer No, you only have on penny. Its value just doubles which doesn't really make sense because then it wouldn't be a penny anymore but regardless, he only has one penny that's worth 5.3M which is absolutely ludicrously
@@han615 Yes, but it would be funny if just one penny doubles every day. At the end of the day, only original penny doubles, while duplicates stay the same. Hence,30 pennies at the end of the month.
@@club6525 Here is the other take. Your penny stays that same regular penny, but penny market value doubles every day, causing daily deflation of 50%. At the end of the month, your penny is worth over 5 million dollars, but the guy who took 1 million at the beginning ends up a trillionaire.
Bro just walking around the store with a jar of pennies
Sorry but 530000000 pennies don't fit on a jar.
Maybe on a barrel.
I remember seeing something like this in my Algebra class about a week ago. It was pretty interesting to learn
I love compound interest when it benefits you
I think the problem comes in when you have to count and move all those pennies
I know right, did nobody thought of that
"So how would u like to pay for the car"
"Pennies"
Edit: omg so many likes ,my dad came back with the milk
HaHa😂
Ill pay with vagis idk what it is i made it up
“Sooo is that cash or card?”
“I said *p e n n i e s* “
It doubles in value which means its only 1 penny that costs 5.3m dollars
@@luciaignacio2826 damn u right bruh my dumbass is dumbass 💀
"Money today is more important than money tomorrow"
money today is better than a black hole
He- "i think ill go with the penny". Me- "you have no other choise😂😂"
Thanks for the advice! Now I gotta wait until someone actually gives me these 2 choices! :)
l o l
nah just use this tip for situations that uses compound interest 🤓
“On the first day it’s worth two cents but on the second day it’s worth four cents”
IN THAT CASE-
I'm gonna eat breakfast.
when it’s February I get like 1.25m or something
$2,684,354.56
Xd
@@willidoes6680 leap year = 28 days
Imagine trying to explain to the bank that you need to exchange 5M$ worth in Pennies. I don’t think that would work out too well.
Day 31 10.6 mil
It’s 5.3 million pennies though
Edit: 530 million pennies
530 million pennies actually
It’s not. It’s dollars. At the start of the chart he shows it says $.02 and turns into 5.3 million dollars and not cents.
@@brass7789 Yeah, you’re right.
Lol might as well delete your comment
It’s not 530 million pennies it’s a penny worth 5.3 million
now if only the Banks could be so kind.
Me: Trying to buy a house
Agent: I take credit only
Massive inflation enters to the chat
5 million dollars is not nearly enough to cause even a mild inflation
Love this creative way to show compound interewt
A very interewting way to show it
@@JK-zl2ux your profile picture is interewting
@@hankthegoofyahhmonke thank you for taking interewt in it.
Yeah. But the term is short. What was the rate again?
Yeah it's cool but I think using such a large rate is kind of misleading lol. Like I get he's just teaching the basic concept of it but I think using an actual realistic rate over a larger period of time would be more helpful
“On the second day, it’s only worth 2 cents, then on the second day it worth 4 cents”💀
Edit: MoM I’m FaMOuS
Yea bro
It makes sense(for legal reasons this is a joke)
How did no one catch that, including me-
Yes
@@Zaoukia i don't understand
I read something like this on the book "millionaires for the month"
“When your penny doubles on the second day it’s 2 cents then the second day 4 cents. 😂😂😂😂😂
It’s a penny it’s worth one cent
In 6th grade I remember the teacher asking us this exact question. Honestly that’s the only thing I remember from 8 years ago
lmao same
me dies before day 30:
edit: thanks for the likes guys i appreciate it
My luck
U got the perfect pfp for this comment 🤣
@@specifictrap ong
“Your off by 100,000 dollars”
“Just give me 5 min”
It does not matter on the more you have it’s the less you get every day-Master Oggway
Actually on day 30 it will be 10,737,418.24 but on day 29 it's 5.3 Million (do the math)
Actually
First day will be the day you got the penny that's how he did it
It doubles on the 2nd day. Day 30 is the 29th day so... 1¢ * 2^29 = ?
A wise man would’ve chosen 1million dollars because no one pays stuff with only pennies you will get killed by the cashier
Nawhh
💀
This isn't the power of compound interest this is the power of exponential growth
The fact that I did this exact question in class is way too funny
The chart he showed looks oddly familiar to one in a book I read a couple weeks ago called “millionaires for the month”
If only compound interest was this aggressive
Lol, my algebra teacher started a lesson by asking us this question. It blew my mind. 😅
"What if its February?"-my friend watching this
It's still 268 million
Uh, no...
@@shrodingerskat please do 2²⁸ on a calculator
Bro flexed his cash and thought we wouldnt notice 🥱
Next time explain the present value of that 5,3 mil vs 1 mil today. Would be interesting
10.6
This is a horror story if it's a debt on compound interest.
Alright its a couple million bucks, how do you plan to pay for that?
"Do you accept pennies?"
Those pennies would fill your whole house and more. You could barely use any because no place wants to take only pennies. 😂
It’s only one penny that has a value of 5.3 million
That’s why you convert them into dollars 💀
@@foxytimber2473 then what? that would literally make your money worthless then. If you convert it to dollars you’d have to do it at a bank. but if you give the bank all your pennies it doesn’t just magically disappear idiot. now the bank will have magic pennies that keep doubling thus flooding the economy with infinite money
@@sosleepy512 then it will cause inflation
In a few months he would actual be the richest man on earth
actually in 12-15 more days
You missed the part where he says the penny only doubles for a month. It doesn't carry on after that.
Bro I was just doing compound interest rn for my hw and this pops up at the convenient time
This is not compound interest, it's just exponentiation. Compound interest would have to take into consideration the percentage of the original monetary value. And its also not infinite like exponentiation, compound value reaches a limit... the Euler constant "e".
He was robbed of some of his money (probs tax or somthin idk) because he was supposed to get $107,374,182.4
I had a question like this in math class and I found out that if the penny doubled every single day for an entire month you’d be sitting with a couple hundred billion dollars
So this guy is wrong?
You definitely did some math wrong
Child: “shut up dad
Dad :
!!!!!!
Imagine losing the penny accidentally 💀
You only need to keep it for 1 day since the next day it dupöicates
imagine losing a Ring worth 5m imagine losing your house papers your car keys your cheque worth 5m imagine imagine 😑
My teacher in 4th grade told me the trick before this video. My jaw droped
Reference to a novel I just bought called: Millionaires for the month…
Sorry but nope. This is not compound interest, this is exponential growth. There's no interest being compounded on a principal value. Just the value being doubled everyday.
It’s still technically compound interest. It’s just at a rate that would never happen. All compound interest is exponential growth just to a lesser value
Compound interest at 100% rate is basically a geometric progression
The problem isnt avout interest, its about how bad at math i am.
0.01 × 2^30
Just use geometric progression for that my guy
Doubles every day🎉🎉🎉❤❤ I’m not dumb I watch his videos
The fact that I ditched doing compound interest homework only to see this💀💀
Imagine if they done this in February 💀
"Mom I have no more storage the pennies just keep duplicating"
Doubles in *value*
Tomorrow isn't guaranteed!
"Tomorrow is not guaranteed"
- Giga Chad 🗿🍷
“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it”. - Einstein
Einstein was a physicist not a investor why would he say that
Please understand that this video wildly exaggerates the advantages of compounding.
No investment will return 100% in one day.
Even at 10% annual interest, your money will take 7-8 years to even double.