26 - Compound Interest Formula & Exponential Growth of Money - Part 1 - Calculate Compound Interest

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.

[davidball]

65 years later, and now I find the Math teacher I've been looking for.

[Backstabbio]

The question is how much money would I have saved if I had this guy as a math teacher 25 years ago...

[transmoonlife]

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.

[samuelselassie]

Ok, let me explain it this way...as a professor, you have earned a compound interest from everyone 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.

[haja]

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

[deeparaut]

You are real Math Teacher Makes us to understand properly

[tw]

This lesson is much more practical than most classes I have taken in college. Thank you so much!

[cesarroldan]

You're such a great tutorial instructor ever.

[JuliafromOttawa]

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!!

[kyawzinthant]

I am not worried about maths and science anymore. All I need is time to watch your video. Thank you again, Sir.

[Nightcrawler]

SIR Mr. The professor Jason!!
You are truly an incredible teacher.

God bless you

We all you

[market_makers_maker]

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.👍

[samuelmartis]

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.

[babansatpute]

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.

[alfredoserra]

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.

[rin]

Been afraid of maths my whole life now i've found a teacher that makes me understand what it took them 3 high school years to teach me in just 48 mins

[Alex-xyvr]

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!!

[vh]

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.

[TheRobimac]

This teacher is one of the best I have seen... ( I am almost 78.)

[amit]

Thanks, you have the gift of making people understand,