Exponential Application

u18_l1_t1_we2 Exponential Application

[williambikman]

"it's not coming from some financial voodoo it actually comes from common sense." this is hilarious

[Hayleighana]

I think his favourite word is intuition

[barbarakrieg]

Thank you, Sal, you came to my rescue again!

[TomislavDugandzic]

I tried to compare what would be cheapest: Compounding once a year, once a month or once a day. It turned out that the less often you compound, the cheaper your loan becomes. Can you explain that so it makes sense intuitively?

Here are the calculations and results:

4000*(1 + (0.03/1))^(1*5) = 4637.0962972000
4000*(1 + (0.03/12))^(12*5) = 4646.4671262211
4000*(1 + (0.03/365))^(365*5) = 4647.3083246046

[LondonWalkability]

in england (UK) what level of education would this be on? GCSE or A level?

[viacalvy]

this is algebra, college algebra math 1111