Simple interest - How to calculate it

Simple interest is different than compounded, or compounding, interest. With compounding interest, you earn interest on your interest, so that your money grows exponentially. But with simple interest, you don’t earn interest on your interest, you only earn interest on your principal balance. Therefore, your money grows linearly.

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0:06 // What is simple interest?
1:03 // The interest formula I=Prt
1:47 // First example: How to find the interest you earn in 2 years?
4:31 // Second example: How much will you have in total? And the amount formula A=P+I
7:28 // Third example: How much money will you have after 6 years?

In this video we’re going to talk about simple interest and how to calculate it. We’ll look at the formula to use to calculate interest, but we’ll also look at a formula that calculates how much money we’ll have in total in the future. The amount we’ll have in the future, as we’ll see, is just the amount of money we started with, plus all the interest we earned.

Which means we actually don’t really need a separate formula at all. As long as we know how to calculate interest, then we can simply add the interest amount to the principal amount that we started with, and we’ll get the total amount of money that we’ll have in the future.

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Hi, I’m Krista! I make math courses to keep you from banging your head against the wall. ;)

Math class was always so frustrating for me. I’d go to a class, spend hours on homework, and three days later have an “Ah-ha!” moment about how the problems worked that could have slashed my homework time in half. I’d think, “WHY didn’t my teacher just tell me this in the first place?!”

[kristakingmath]

Find out how much money you'll have in an account over time. 😉

[fabygotjokes]

Where have you gone. Your videos were so helpful.

[JesusRocksTryPrayin]

Hey Krista! I wanted to thank you after the fact for uploading all these. I've always been quite good at math, but years ago your videos still helped me a lot! I just gave your channel to someone; I hope this has paid off for you.
You have helped a ton of people and I am sure these vids will continue doing so forever. Thanks again!!

[KaziCare]

Actual props for putting this at 1080p60fps! Such a pleasure to watch

[XGenKaneShiroX]

Holy moly, the 2 years is quite long and you haven’t posted a video yet but I’m glad you’re still alive on YouTube replying to comments in 2020.

[abhijithcpreej]

You have a beautiful voice. A very calming voice

[RyanCoke]

Thanks! Sometimes real world examples really help get this across to me. Great video.

[xoxo-sfzg]

Thank you for all your contribution, mam! 😊

R E S P E C T 🏅

[joses.]

How do you not have more subs this is great!

[TriptoPal]

Your videos are really awesome.
I always enjoy to see your videos.
Thank you for these videos.

[davidhill]

just starting your Udemy statistics course. and loving it.

[pabloski]

A great channel, i wish i could meet it earlier
(Not english speaker, sorry for possible errors)

[TahsinEngin-Akademi]

Could you please let me know which app and Equipment are you using such great contents? I am using Wacom tablet but my pencil is not displayed while I am screen recording? What do you recommend?

[jayesh]

literally was so simply and easily expained....thank you so much

[katherine]

Hey Krista King, how did you come to being so good at teaching complicated math? I would like to be able to teach like you do.

[lightswitch]

how do you multiply numbers with percents?

[sun_flower]

Hey Krista, I hope you're doing well. Are you ever coming back?

[mystic]

thanks for the help, I've been trying to do this even tho its so easy!!! i was just getting stumped on the total and just the interest...

[sajansingh]

Hey Krista, if I can ask, how did you get so good at math and what did you study in college or what are you currently studying if you’re still in college? Thanks!!!

[dyus]

Thank you for the video! Great as always! Could you make video tutorials on Digital Signal Processing?