What is compound interest?

When it comes to interest, it isn't always simple - but it doesn't have to be difficult to understand. Basically, it usually falls within one of two groups - simple or compound interest. But what is the difference? Here is a quick crash course.

[trxduyh]

I’ve been trying to teach every person I know what compound interest is and why it’s so important. Thank you for this simple and beautifully illustrated explanation!

[elizabethcarrillo]

The outstanding video explains this concept in less than 3 minutes, instead of a long 1 hour of boring videos. Thank you very much!

[ifeanyichukwuidoko]

Thanks for the clarification on these interests. It's a well-done job you did. More grace and inspiration to do more.

[favourazah]

Great Video and keep being a blessing to humans . please, Is there anyone here with the best ideas on how to utilize 40 thousand Dollars and can assure good returns from it?
Any idea ...

[passionx]

Can you explain what how compounded daily works? Does the interest accrued daily, get added (for the amount which in the account for that day)?

[kathleenlouise]

How do I start? is there a bank in Australia that offers compound interest?

[lee]

This was extremely helpful, thank you!

[Apparel]

Excellent illustration to get your point across 👌 👍 👏 😀

[John-jomb]

So when you buy a house you pay with low interest but you do compound interest

[eranshalom]

Einstein never said it.
The first known use of the compound interest phrase was in 1983 in NY Time's column.
Don't confuse your viewers.

[renv]

with how banks' deposit interests are now this is not a thing anymore. Its better to use credit for purchases and build up your credit score and put your money on investments like stocks than let it sit there in the bank

[Dhanush-zjmf]

great efforts in making the video!! Thanks

[gaweindegraaf]

Why does she call a year ... a "yiah' 😮

[kaydiankerr]

thank you, this video has given me insights and clarity. I was struggling to understand. Appreciated @Canstar

[nancyborja]

You earn more on compond interest than in Simple interest?

[Enchanted-Music-Garden]

Wait .. where are these places that give you 2% or 5% interest on your deposit? 🤔

[TR-vhfi]

The saddest part is, NO BANK will give you 2% interest.

[ozdoits]

To slow the speed at which this video plays:
1)
(Smartphone) In upper right corner of video screen, tap the three dots.
OR
(Computer) In lower right corner of video screen, tap the Settings wheel icon.

2)
Tap "Playback Speed".

3)
Try tapping "0.5x". Your video playback should immediately drop to half-speed.

Does that help?
🙏🌼

[ayushkataria]

Thanks it was very helpfull..I was having trouble understanding it but now I do...😊

[jonathangeorge]

Am I the only one confused? My calculations are a bit off, but I can't find where I'm going wrong. Using your example, $1000x5% (0.05) = $50. Withdrawing this each year for 30 years in my calc would be 50x30 which is $1500 in simple interest. in your calculation, I would have 23, 250. somebody, please help me out here.