What is compound interest?

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  • Опубликовано: 19 май 2024
  • When it comes to interest, it isn't always simple - but it doesn't have to be difficult to understand. Basically, it usually falls within one of two groups - simple or compound interest. But what is the difference? Here is a quick crash course.

Комментарии • 116

  • @gliterott
    @gliterott 3 года назад +174

    Maybe im the one that's slow

  • @user-tr8xd3uy3h
    @user-tr8xd3uy3h Год назад +17

    I’ve been trying to teach every person I know what compound interest is and why it’s so important. Thank you for this simple and beautifully illustrated explanation!

    • @stephaniecarter1107
      @stephaniecarter1107 11 месяцев назад +2

      I have more questions do you mind me asking you a few questions

  • @elizabethcarrillo3892
    @elizabethcarrillo3892 Год назад +7

    The outstanding video explains this concept in less than 3 minutes, instead of a long 1 hour of boring videos. Thank you very much!

  • @ifeanyichukwuidoko6599
    @ifeanyichukwuidoko6599 2 года назад +10

    Thanks for the clarification on these interests. It's a well-done job you did. More grace and inspiration to do more.

  • @lee2607
    @lee2607 3 года назад +33

    This was extremely helpful, thank you!

  • @Apparel869
    @Apparel869 Год назад +1

    Excellent illustration to get your point across 👌 👍 👏 😀

  • @favourazah1504
    @favourazah1504 2 года назад +69

    Great Video and keep being a blessing to humans . please, Is there anyone here with the best ideas on how to utilize 40 thousand Dollars and can assure good returns from it?
    Any idea ...

    • @andrewblack4432
      @andrewblack4432 2 года назад

      Put it in a bank .

    • @favourazah1504
      @favourazah1504 2 года назад

      @@andrewblack4432 Thank you ,but that’s not a good idea for me .

    • @grantstanley6039
      @grantstanley6039 2 года назад

      @@andrewblack4432 😂😂 putting money in the bank can't make you richer .

    • @grantstanley6039
      @grantstanley6039 2 года назад

      If you’re to Die Today , which is very possible,Your Children will not inherit your degrees or your current position in the company or organization you work for from 8am to 5pm . Kids inherit Businesses/investments.Think about this throughout this Month.

    • @jamesjude4988
      @jamesjude4988 2 года назад

      @@grantstanley6039 💯

  • @renv6653
    @renv6653 3 года назад +8

    with how banks' deposit interests are now this is not a thing anymore. Its better to use credit for purchases and build up your credit score and put your money on investments like stocks than let it sit there in the bank

  • @eranshalom1336
    @eranshalom1336 3 года назад +25

    Einstein never said it.
    The first known use of the compound interest phrase was in 1983 in NY Time's column.
    Don't confuse your viewers.

    • @pete7397
      @pete7397 2 года назад

      yea..but it's good folklore

    • @zennir48
      @zennir48 2 года назад

      it called. Clickbait :)

  • @prajapatihasmukhbhai7280
    @prajapatihasmukhbhai7280 2 года назад +3

    Really helpful great job

  • @passionx
    @passionx Год назад +2

    Can you explain what how compounded daily works? Does the interest accrued daily, get added (for the amount which in the account for that day)?

  • @gsgames6619
    @gsgames6619 3 года назад +5

    I gave Like for ur creativity 😃

  • @kaydiankerr
    @kaydiankerr 9 месяцев назад

    thank you, this video has given me insights and clarity. I was struggling to understand. Appreciated @Canstar

  • @kathleenlouise1208
    @kathleenlouise1208 2 года назад +1

    How do I start? is there a bank in Australia that offers compound interest?

  • @Dhanush-zj7mf
    @Dhanush-zj7mf 9 месяцев назад

    great efforts in making the video!! Thanks

  • @prajapatihasmukhbhai7280
    @prajapatihasmukhbhai7280 2 года назад

    I liked this video and i appreciate❤

  • @RedFox110
    @RedFox110 3 года назад

    Wow Thanks Great work

  • @TR-vh1fi
    @TR-vh1fi 2 года назад +8

    The saddest part is, NO BANK will give you 2% interest.

    • @joelwinta8935
      @joelwinta8935 Год назад +1

      S$p 500 has annual return of 10%

    • @sheriffaminkebe776
      @sheriffaminkebe776 Год назад

      @@joelwinta8935 how mate?

    • @LettingHellLooseGaming
      @LettingHellLooseGaming Год назад +1

      @@sheriffaminkebe776 S&P 500 ETF. It is based off the 500 top companies in the US, historically it has always grown.

    • @F1KU
      @F1KU Год назад

      This aged well. Now no banks will give you less than 2%

    • @peace-a
      @peace-a 2 месяца назад

      But don't high yield savings account currently offer approx 4% monthly interest? Don't those interest earnings compound monthly??

  • @John-jo4mb
    @John-jo4mb 3 года назад +2

    So when you buy a house you pay with low interest but you do compound interest

  • @WhatIfANDHow991
    @WhatIfANDHow991 Месяц назад

    Good visualization!

  • @prajapatihasmukhbhai7280
    @prajapatihasmukhbhai7280 2 года назад +2

    Wows thanks great work

  • @ozdoits
    @ozdoits 3 года назад +6

    To slow the speed at which this video plays:
    1)
    (Smartphone) In upper right corner of video screen, tap the three dots.
    OR
    (Computer) In lower right corner of video screen, tap the Settings wheel icon.
    2)
    Tap "Playback Speed".
    3)
    Try tapping "0.5x". Your video playback should immediately drop to half-speed.
    Does that help?
    🙏🌼

  • @gaweindegraaf
    @gaweindegraaf 4 месяца назад +4

    Why does she call a year ... a "yiah' 😮

  • @christopherngeleoma
    @christopherngeleoma 9 месяцев назад

    thanks for your teching

  • @tasninnewaz6790
    @tasninnewaz6790 2 года назад

    What is the dimension of this paper?

  • @ayushkataria1200
    @ayushkataria1200 3 года назад +3

    Thanks it was very helpfull..I was having trouble understanding it but now I do...😊

    • @canstar
      @canstar  3 года назад +1

      Thanks for the feedback, Ayush! We're glad you enjoyed the video.

  • @ayeshaadhikari6123
    @ayeshaadhikari6123 2 года назад +1

    woah this was fun!

    • @canstar
      @canstar  2 года назад +1

      We're glad you liked it!

  • @kennytheclown3859
    @kennytheclown3859 Год назад

    Makes sense.

  • @nancyborja6768
    @nancyborja6768 6 месяцев назад

    You earn more on compond interest than in Simple interest?

  • @Chandrika-Moon
    @Chandrika-Moon Год назад

    Wait .. where are these places that give you 2% or 5% interest on your deposit? 🤔

  • @dosomthin.2650
    @dosomthin.2650 2 года назад +1

    Those who didn't understand noticed that she was drawing with her left hand

  • @angryidahobusdriver
    @angryidahobusdriver 11 месяцев назад

    Easy to understand

  • @stormrider1375
    @stormrider1375 Год назад

    "If only statesmen had been compelled to study law of the laws of Compound Interest, the fate of the whole human race might have been very different." - William Joyce, "Twilight Over England", 1940

  • @RedFox110
    @RedFox110 3 года назад

    Nice effort

  • @sumanchettri3163
    @sumanchettri3163 3 года назад +1

    Thank YOu

  • @drjesuselshaddai9537
    @drjesuselshaddai9537 Год назад +1

    How did she get 23 250?

  • @shivdatt780
    @shivdatt780 2 года назад +1

    Helplass🙄😉

  • @AcidSh33tz
    @AcidSh33tz 10 месяцев назад

    Wait where tf did the 18 cents come from WTf?

  • @blackspiderman1887
    @blackspiderman1887 2 года назад

    I prefer simple interest

  • @shaunakbhangre1612
    @shaunakbhangre1612 2 года назад +1

    it sucks...i coudnt understand shit..im watching another video..appre for making the efforts and helping others understand tho.

  • @jonathangeorge3404
    @jonathangeorge3404 Год назад +4

    Am I the only one confused? My calculations are a bit off, but I can't find where I'm going wrong. Using your example, $1000x5% (0.05) = $50. Withdrawing this each year for 30 years in my calc would be 50x30 which is $1500 in simple interest. in your calculation, I would have 23,250. somebody, please help me out here.

    • @shaerose1253
      @shaerose1253 Год назад +2

      Hey! I figured it out. You dont withdraw anything. Youre right that 1000×5% = $50. Thats year 1. Remember, in the example you put 1000 in each year for 30 years. Each year the account gains interest of 5% on the CURRENT yearly balance. So year 1 is 1000, year 2 is 2000, year 5 is 5000, and year 30 is 30,000. You keep doing the 5% math on each of those for 30 calculations (1000×5%, 2000×5%, 5000×5%, 17,000×5, etc) the answer you get from aaalll of those comes out to 23,250 that she got. I did the math myself and got to the same number! Hope this helps!

    • @shaerose1253
      @shaerose1253 Год назад +2

      Combine your answers for all your numbers multiplied by 5 percent, and it'll get you to $23,250, to clarify! ❤️

    • @gavin6381
      @gavin6381 6 месяцев назад

      @@shaerose1253thanks

  • @jonneycarlos8179
    @jonneycarlos8179 Год назад +5

    These past few days watching my crypto portfolio decline is very disheartening. Holding doesn't really profit much. Any ideas on how to earn better on the short run?

    • @evamason2471
      @evamason2471 Год назад

      Short term trading is much preferable considering the
      current market fluctuations.

    • @fatherjac6228
      @fatherjac6228 5 месяцев назад

      also prolly just find a good etf and stop worrying ab crypto

  • @andreluydens2602
    @andreluydens2602 Год назад

    My parents know about it but they say they're too busy to do it

  • @nicholaswoods8000
    @nicholaswoods8000 2 года назад +6

    Thanks for this insightful video, this is brilliant and quite captivating as well! I Invest my money in forex and it has really been favorable to me this season ever since I was recommended, I make good rewards from my investment on a weekly basis best regards to Mr. Ray Perkins mentorship/guidance 🇺🇸

  • @devantejeffries3810
    @devantejeffries3810 6 месяцев назад

    The secret is in the percentage of your weekly check

  • @jemo1574
    @jemo1574 Год назад

    interests make the rich richer and the poor poorer it's haram all the way
    thx for explanation

  • @nerdstudybird4952
    @nerdstudybird4952 2 года назад +7

    Gonna be honest, never been so confused in my life.

    • @elijahjupiter3650
      @elijahjupiter3650 2 года назад +8

      SAME!!!! n the drawing keep straying me away on wat she was saying 😂

  • @acx2269
    @acx2269 2 месяца назад

    You can get 4.9% with anz

  • @Dizzle72
    @Dizzle72 8 месяцев назад

    Still don’t understand it. Guess I’m gonna keep paying it 😂

    • @xhunter1003
      @xhunter1003 28 дней назад

      This the 5th video i see and still dont understand 😂

  • @thevalue7284
    @thevalue7284 2 года назад +2

    Not so understanding

  • @ch4rli3j24
    @ch4rli3j24 3 года назад +2

    I’m becoming a millionaire soon

  • @jakefromfarmstate2283
    @jakefromfarmstate2283 6 месяцев назад

    So.. simple interest is when it is applied yearly, and compound interest is when it is applied monthly?

  • @eNOughPlaY2006
    @eNOughPlaY2006 Год назад

    not understood

  • @TheDjiMini2
    @TheDjiMini2 Год назад

    Use a white board

  • @dennisb2784
    @dennisb2784 2 года назад

    hmmmm

  • @thevalue7284
    @thevalue7284 2 года назад +1

    It is to fast

  • @crazyboysince1998
    @crazyboysince1998 5 месяцев назад

    Seems kinda silly to me as it would take over 10 years before that 1 grand became two grand at 2% a year. Actually it would be maybe 1200 in 10 years 😂

  • @FloridaMan69.
    @FloridaMan69. 4 месяца назад

    Creamy AnaI

  • @-ivanaguzman-3600
    @-ivanaguzman-3600 3 года назад

    Holis hay alguien aquí que hable español 😁 ya se es raro encontrar a alguien que hable español en un video que se habla en inglés pero culpa mía no es por que en una clase que se llama finance & organic hay que poner un video que hable de interés simple y compuesto pero en inglés por que esas clases o clase es en inglés ok chao me responden los que si saben inglés o entendieron ok chao ✌️

  • @MatiasPeruYT
    @MatiasPeruYT 3 года назад +4

    buuuuuuuuuuuu

  • @cookwithkukiee9832
    @cookwithkukiee9832 Год назад

    You so fast

  • @danielmcdonagh9400
    @danielmcdonagh9400 2 года назад

    roses are red violets are blue i came here for homework and i know you did to

    • @canstar
      @canstar  2 года назад +1

      Good luck with your homework, Daniel!

    • @danielmcdonagh9400
      @danielmcdonagh9400 2 года назад

      @@canstar thanks man the vid was good btw

  • @DannysTools
    @DannysTools 2 года назад

    its haram bro

  • @hbsyvusb
    @hbsyvusb Год назад

    Maybe I’m the one that’s trippin

  • @mokshgupta8232
    @mokshgupta8232 3 года назад

    Really helpful
    Great job

    • @canstar
      @canstar  2 года назад

      We're happy to hear that!