COMPOUND INTEREST CALCULATION example using a CASIO FX-83GT

COMPOUND INTEREST CALCULATION example using a CASIO FX-83GT

In this video I'll show you how to use your calculator to calculate compound interest/growth, for when you want to do it the old fashioned way without using Excel or an online calculator!

Remember compound growth/interest is accumulated with each period of time, so that you receive interest on top of the previously earned interest! This is great when it comes to investing but not so good when it comes to credit cards!!

Examples as follows:

⏰Timestamps
0:00 - Simple calculation of 5% growth on £100.
1:02 - £100 growing at 5% per year for 10 years
2:45 - £100 growing at 5% per year for 10 years with interest applied monthly
4:03 - £100 initial investment with a deposit of £100 per year growing at 5% per year for 10 years.

⭐Values used in the formula are as follows:
A = Future Value
P= Present Value/Principal
r = Interest Rate/Growth Rate (expressed as a decimal)
t = number of years the money is invested for
n = number of times the interest is compounded per year

My channel is for information and education purposes only. Any information or guidance given does not act as financial advice. Please consult a financial adviser if you are unsure in anyway.

My aim is to provide education and guidance to help individuals understand pensions, investments and protection

[EdmundBaileyUK]

Please see ‘Description’ for the time stamps!

Thanks so much for watching! 👍



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See you next time!

[lukewrigley]

Thank you found your video. You make it very simple even if I had to rewind the video 20 times lol

[leesmith]

3:53 it may just be me misunderstanding what you're calculating here but it feels off to me. If i got a savings account and they were paying me 5% yearly interest paid monthly i would not expect to get 0.05/12=0.4166% each month. if we try that on £100 it would calculate to be 100*1.004166^12 = £105.116 as each month the interest gets interest applied making it more than 5%. I thought it would be (1+0.05)^(1/12)-1 = 0.4074% a month so when it's compounded each month the yearly results works out to be... 100*1.004074^12 = £105 which is 5% interest in a year.

[katdes]

the last calculation where you add £100 at the start of each year for 10 years the correct answer is £1320.68 before you times the PV you need to deduct 1 to arrive at the multiple factor of 13.20678, Ive done it manually (yes its sad!) and its £1320.68

[bhaveshpatel]

brilliant stuff, well worth know how your hard earned money is compounded with different You could be a brilliant maths teacher too. LOL