How to Calculate Compound Interest

This is a simple video covering very basic interest calculations both simple and compound styles. It also goes over some insight which I hope can help a lot of people who are not familiar with doing the calculations manually.

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[chrislewis]

Thank you I truly appreciate you! I just went through 5 videos before you and they did so many complicated things it was ridiculous! What you did was simple and straight to the point.

[SpicerCapital]

Such an important lesson!

I like how you applied it to debt and to investing. It works both ways! Compound interest can leave you in ruin AND it can make you rich - you just have to make sure it is working for you not against you!

[thecooperacademy]

Compound interest, the eighth wonder of the world!

[MichaelJayValueInvesting]

*Bonus* If you want interest compounded continuously use the following formula: A = P * e ^ (r *t)

Where r is your interest rate, P is your starting amount, t is the time in years, and e is 2.71828.

[es-phpg]

hey please do a video on real estate investing - buying and renting out properties.
Thanks

[vromerone]

*That was way more complicated than I do it. I just move the decimal over twice for the percentage. example, 6%= .06 and I multiply that by the principle, and then divide the interest by 12. So, $10, 000 at 6% would simply be, .06x10, 000 which is 600 and divide that by 12 which is $50 monthly. Easy-peezy :)*

[dylankrid]

A fan meet up in Dallas TX would be very cool :)

[michaelvarney.]

Compounding continuously greatly simplifies the math and the representation.

A = P Exp(r t)

Interest rate = 8%/year, time = 10 years, principal = 10000

A = 10000 Exp(0.08*10)

Fewer keystrokes on the calculator, so more efficient... which I know you like. ;)

[NickKravitz]

Your credit card balance calculation at 1:55 should be $201.50. The monthly interest is calculated on the average balance, but this gets added to the ending balance not the average balance.

[emiami]

6% divided by 12 = .005 not am I missing here?

[beaviswealth]

Snorlax... don't do it! You can also use a financial calculator :P

[Naturenerd]

That x 1.1 trick is a cool short cut. Less confusing.
x 1.08= 8%
1.09 = 9%
1.12 =12%
1.31 =31%
would 1.3% interest be x 1.013 if they have some number like that?

[jamesthacoolcat]

Compound interest is awesome for investing.

[leskateurdudimanche]

Can we get good credit in Europe ? How do you choose ?

[dylongarrett]

You took an important principle and made it super easy to understand. Awesome! 👏

[jenjen]

Compound interest is they 8th wonder of the world. It works both ways toward debt and investing. It’s how you got out of your engineering gig and it’s how I will be able to buy my freedom out of Wall St slavery sooner than later hopefully

[CXS-qoqn]

Nice video i was searching about it yesterday thanks

[silviag]

😄 LOLcat and IceBat are literally two peas in a pod!!🤣

[neweast]

BeatTheBush interesting about interest % 👌

[chrisobiora]

just had my maths gcse and this did not come up