Deriving the Annual Compound Interest Formula

[patrickjmt]

the derivation looks like a wonderful proof to me

[patrickjmt]

@chocopie645 if you multiply a number by 1, it does not change. if you multiply it by 1.06, it gets larger by .06 or 6%

[patrickjmt]

@MetalBassjunkie420 i do not have any videos about annuities although i may make some soon!

[Pineapplexx]

I actually hate math but i'm kind of getting better at it thanks to your vids!!!! I'm actually doing much better in class.. ty for ur help

[kylecoolio]

ok, I am currently studying finance and just want to make sure i have grasped the most important concepts, but as for questions, thats all for now, thankyou

[akfoo]

Tnx man... im an igcse student and what you have done helped me by a landslide....

[Xanthium]

Thank You so much for the help i have had a late math assignment you were the only one who could help me understand thank you.

[kylecoolio]

thank you for your input, if you have any knowledge of annuities, do you know if that is embedded in accounting as well or where would you apply annuities in occupations associated with finance, thankyou

[Alternamaton]

6% is .06, but 1.06 should be thought of as (1+ .06), because we take (1 + .06) and multiply it by our current principal balance to find our new balance after one compounding period. We have our original principal plus 6% of our original principal, and if you apply the distributive property of multiplication to P(1 + .06) you'll see that it's just a compact way of expressing that.

[aayushikumar]

A nice review on compound interest and how the formula is made.

[DanT-iuoc]

patrick, you are eons better than the entirety of James Stewart's math books. That man built a mansion off of confused math students. great video.

[kadabiaiya]

thank you - this helps me a great deal with my distance learining program. cheers

[tomchalmer]

I believe you are right. Although the pattern is obvious, if you wanted to be rigorous, you would have to use induction y

[ianfresno]

@patrickJMT Dear Patrick, can you please make a video on Newton's law of cooling? I searched it on youtube and it was a suggestion with your name next to it but I guess there was no video. (Search Newtons law of cooling p...and patrickjmt pops up next to it)? Thanks

[YohamaMr]

{ (P x i) + P = Pi + P }
(Principle x interest) is due after the 1st year
Principle is returned after the 1st year
Factoring leads to P(1 + i )
in the lesson YOU DO NOT EXPLAIN WHERE YOU AND WHY YOU SAY one (1)
curious student will want to know where you get the ONE.
Thank you for the lesson
Joseph

[TopTrendingHungary]

@afreakenracoon c1=c0*(1-k)^^n

c1: the value of the car after n years
c0: the value of the new car
k: interest rate (0.15 cause you have 15%)
n: amount of years

RU learning for a high school final exam? .)

[arraso]

Do u have video on quater yearly compound, half yearly compound video?

[andr]

finally I understand the formula, thanks a lot!

[simpsons]

Your vids are very helpful :) keep it up!

[amrutvani]

Why to multiply principal by 1+ apr. Where this 1 comes from ?