Understanding Simple Interest and Compound Interest

[TheMadJake]

I have my maths gcse in england tomorrow, just watched this and it helped me really figure out the deterrence between the two,thankyou very much, great video!

[SuperNickBowser]

What's a faster way to do this I need to know NOW!!!!!!!!!

[patrickJMT]

@SuperNickBowser hire an accountant

[SuperNickBowser]

@patrickJMT No like is there a faster way to do this like multiply or somthing

[awesome5343]

I was taught. B= P (1+R). [small'T to show to times power].

What to do on calculator

E.G. Find the compound interest $927 with 9% interest for 4 years Do : 1.09 to 4th power ( on calculator by typing in 1.09 [hit times button ] [hit equal button 3 times (it should always be one time less than the power)] and then multiply by 927

[27hilltopper]

just wondering why didn't u just do P(1+APR)^x  for compound interest?

[ajremydawg]

lmao JMT= jedi mind tricks

[BOlJ7VCER64]

everything that took a whole semester to learn from my teacher i learned in an hour just from this guy. thanks so much

[FirstJudo]

how about (1 + APR) to the power of number of years, times Principle?

[Dariachuu]

My exam is next week, if I pass... It will be because of you :) THANK YOU SIR... you win over my teacher anyday... he's a foreigner, cant pronounce most of numbers/equations very well. when he says principal... sounds like Prinsipyal with a strong accent or when he says compound interest, sounds like Kompand Iiiinterest... you get the point :D haha so thank you so much!

[jezzie7354]

the formula is ---> principle + (time(principle x APR)) = Amount

[kagebonshino]

you said principal x APR x time =simple interest

but when i do 10000 x 0.06 x 5 = 3000 on a calculator the answer is 3000 and not 13000

HELP!

[jezzie7354]

@kagebonshino 3000 is the interest earned over 5 years, not the amount

[Dariachuu]

@kagebonshino You have to add 10000 more :) your starting money ;)

[TyFrederick]

you're the reason I have my high school diploma. thank you.

[Thundeee]

Thanks for everything... keep it up!! Its helping me alot, for my math final

[MrSambaridly]

Principle or principal ... no matter what.. he did the math superbly.... thats s wat we want....@patrickJMT u r awesome...

[patrickJMT]

@MrSambaridly thanks :) and i had it right :) it is principal!

[93sachit]

dude..its ''principle'' and not principal...



[patrickJMT]

@93sachit llloooooool, sure thing dude. epic fail! any more corrections for me??

[ajremydawg]

@93sachit dumbass XD

[MarkConway73]

Thanks, this helps people understand my business. Video on my channel!

[SuPPerReaPPer]

thank you so much dude :)

[LiAmTheLegend123123]

thank you pal helped alot

[curtiscassida]

here is some math only a lefty would understand:

left handed + dry erase board + lots of writing= big mess

you did good...

[1800CurlGirl]

You saved my ass on the School Certificate :D

Thank you so much!

[DrBrianMcNamara]

If I were to add money to a savings account which is getting compound interest, would I get interest on that too?

[kerwinchadrick]

THANK YOU THANK YOU THANK YOU A BILLION TIMESS!!! YOU SAVED ME! YOU TEACH WAYY BETTER THAN MY NORMAL TEACHER,I DON'T UNDERSTAND ANY THIING HE SAYS THANK YOU ONCE AGAIN,I WISH YOU WERE MY PERSONAL TUTOR :D

[MrAlexx234100]

thumbs up if u learned p.r.t

[scarbone]

thank you !! you really helped me out of a problem i was stuck on for past 1 hour LOL

[angelaleones]

my pre calc teacher in college does not know how to teach, so i got to your vids for help, thank you!

[ryzal123]

i still dont understand men

[patrickJMT]

@ryzal123 i think you are watching the wrong video

[NorthernNiinja]

@patrickJMT i think he meant to say man . i still dont understand man. make more sense

[deanbax9]

so what are the two formuals

[11031992em]

sir,, do you have videos on "annuity" ?

thanks !

[JaseyRae100]

Wow! My teacher has been trying to explain this to me for weeks and I've never understood it until I watched this! I have a GCSE maths exam today, but now after watching this I feel a lot more confident :} Thank you so much! x

[MrHussainali512]

lov ur class thnxxxxxxxxxxx my dear sir after 2 days i hav math stat examz nd now i feel i cn do my test perfectly

[AuroraJake]

If by they you mean the public schools... I agree it's a shame. I home school, and the reason I found this video was to teach compound interest to my 11 year old 5th grader.

[DIVAGIRL2TOO]

thank you i learned alot becuase i didnt know how to do this at all but now i do becuase of your help.... thank you so much

[Shmegr]

I'm in 8th grade and I'm learning this in class.

[Sylvanas17]

awesome vid

[StrictlyBizniz15]

Thanks alot

It helped me soooo much on my tests and homeworks

God bless

[theadizo]

i live in Ireland and i learned about interest when i was 13 im 16 now not sure what class that is in the U.S Banks usually offer an increased APR in the second year and maybey third so the 6 % could end up at 8% for the second year

[theadizo]

i live in Ireland and i learned about interest when i was 13 im not sure what class that is in the U.S

[empireoats]

Thanks! Great starting video for a quick explanation!

[DawnTV2]

Why dont u just do: 600 x 5 + 10000?

[26Mscrystal]

Thanks Patrick. This was very easy to understand. 

[TheHumbleNachos]

this was really helpful. thank-you

[LatinGamerps3]

Thanks dude,

helped alot

[honeybear002]

how do you find out how much compound interest they got if you are given the end number>>

[shanpat618]

i have a total different formula!!!

[farrahivey]

you should make as many of these as you can... lol.

nice handwriting.

[goufranxoxo]

why is turned into 1.06?

[femboost]

You, sir, are a gentleman and a scholar. Thank you for the helpful videos!

[estesoyojajaja]

@femboost how do you calculate how much did your principal growh in 5 years by using simple and compound interes?( on percentage)

[averydagirl]

this helped me alot!!!

[kimbu2]

I'm just writing to say tnks sooooo much. I got the worst maths teacher ever,I watched ur vid on how to find assymptote and that help me tremendously in my test. Now when I'm done with my maths class I come on here,to better my understanding.

[mrflynfresh]

The simple interest method is usual a one-time investment. The compound interest method you should have a initial investment and make re-occuring deposits into that investment monthly, quarterly, or annually...

[navpreet1982]

Thank you very very much

[MarinesUSMCMarines]

Left handed people!!! rule the world!!! :) he he

[thepatshowonwp]

Thank you for the vid, it helped to simplify for me an assignment I got for this weekend and I agree with you one hundred percent, it IS a shame this is not taught in elementary schools. You're a good man and a smart one!

[patrickJMT]

@thepatshowonwp thanks for the kind words. and i am less smart, it's more about being studious and hard working

[estesoyojajaja]

@patrickJMT that is true, by the way, how in HELL dou you use logarithm on compound interest?

[estesoyojajaja]

@patrickJMT i do not understand why did you put a 1 to the .o6%.

[ebbijay]

@thepatshowonwp oh it IS taught in elementary schools - at least here in australia! which kinda sucks cause my test on it is tomorrow :( video helped so much though!! :D

[thespecial99]

thank you for the video it has really helped me out

[annastar97]

patrick there is much easier formula ... P(1+R/100)^n  gives u exaglty same answer and saves u lot of time :P

[CRSanchez137]

Why did you add a 1 to 0.06 to 1.06  i dont understand

[HundredYearOldOak]

Thanks mate, your videos are helping me.

Got alot of GCSE leaving tests next week, you've just helped me feel more confident. :)

[Vide0surfeR]

this video is getting me excited about saving money!

[Raeb222]

Thank you very helpful

Do you have more ? ( how to videos, car payments other loans?)

[lifechange1221]

Thanks you have helped me.

[lifechange1221]

Thanks dude. You have helped me.

[Frozenmemory1]

wow! your this video is very useful, now i finally get what is compound interest and simple interest. Thank you

[dudz40]

These videos are helpful. I actually have my first IB exam in math tomorrow and this video has helped me in reviewing financial mathematics.

[SuperAlexrios]

where i can invest with compound interest Does every bank have that product?

[Zakarxluv]

Thank you sooo much, you helped me so much! THANKS SOOOO VERY MUCH lol You are a life saver<3

[twisteddwicked]

Thank you! Your video definitely helped!

[lmaoatyourfacedotcom]

vvvv yeah umm its 1.06 and if you do the problem with 1.06 its the same answer so yeah it doesnt matter...

[graffitilearner]

HOW DID U EVEN GET 1, TO ADD 1+.O6

[femkunmi]

Thanks,Pat but suppose you know the A and P and N how do you find interest rate after 4yrs

[ProperEnt]

where are you getting 1.06 from?

[TheBluecotton]

ahahah you teach better than my teacher

tomorrow i have a test on this and i had no clue what the heck is compound intrest, now i get it :)

[fanofwrestling123]

I can calculate the answer for compound interest on my calculator. Using a Ti-30xa texas instruments calculator. HELP, my final exam is this thursday.

[girlybet01122002]

thanks

[ShiningStarWriter1]

I lost u around 4:48! Ugh I hate math.

[yyykkll]

find the compound interest on $10000 at 10% per annum for 2 years to the nearest dollar. Interest is compounded yearly.

HELP i don't know how to tackle.

[xSESSANTANOVE]

10,000(1+0.1)^2 = 12,100

[SoBeSpartan]

Ty! This helped me alot! =D

[caria67]

Im in 7th grade and we are doing this! I sucks lol.

[creativeartist07]

ur left handed too like me..! thnx btw for that quick review for our assignment..

[abdelanas]

they teach it at my school im in yea9 in in the uk a so therefore should be 13-14

[josda1000]

hey patrick, i'm going to an end the fed rally in boston... was wondering if you're interested in that kind of thing? sounds like you could be.

[gforceram]

I like how you used snowballing as an example at 12:14. this vid helped me a lot thanks

[patrickJMT]

happy to help!

[sickcombos]

@patrickJMT hey if i put in the bank 10000% and interest Is 5% per annum .OK

HOWE I CAN KNOW WHETHER THE BANK IS GIVING ME COMPOUND OR SIMPLE INTEREST??

PLZ ANSWER ME!

[estesoyojajaja]

@patrickJMT so, with morgages, loand, study loans,credit card,etc...they use compound interest, but...in wich situation they use simple interes?

[Sw33tNLoved1]

In simple interest, how come you don't divide by 100?

10,000 (principal) x 6 (% rate) x 5 (yrs.) over or divided by a 100?

I'm confused, cause that's what my teacher told us to do. I have a IGSCE Mock exam tomorrow. Care to explain?

[chalesnic200]

Can you explain how to calculate to the power of a number

[Ikanant]

I just want to say that this is a great idea to us,the student that are studying at home.....Mr. maybe you don't know but,thanks to you now I'm passing my PreC. class with excellent grades,and I'm sure that the next year with Calculus,this will be better...THANKS A LOT. ; )

[f1u2c3k4]

ha just say compound interest uses the principle of the first year as the new principle of the 2nd year this sums it all up=) hope i am right=P

[Josh7331]

Now I can do my 8th grade math homework. (you teach much better then my math teacher.) Thank you. ^^

[patrickJMT]

glad to help : )

[scorpiojudo]

I'm gonna do my SATs pretty soon, any advice on what books to get so that I can study from? I've been out of high school since 1997 so yeah it's been quite a while. I was ok with maths back in High School, but math is something I have to do everyday in order to remember the formulas. Honestly I need to redo everything. Your vids help alot, but a swift reply would embolden me to make an immediate purchase! thanks

[patrickJMT]

any SAT study guide should help... they all cover the same stuff.

some have more review/less actual tests, some books are more practice tests/less review.

just depends on what u feel like u need

[alanna4858]

This is an excellent series. Thank you for these. I am 23 and still have big problems with math. do you find that your own students watch these videos and make use of them outside the classroom? I am hoping to become a teacher although something tells me Social Sciences or English would be a problem to do over YouTube LOL.

Thanks again. Excellent and useful.

[patrickJMT]

yes, i have students that watch these outside of class; it is the reason i started posting all of these videos in the first place. i wanted to my students to be able to go home and have a resource for when they are actually doing the problems

[MarylandJuly89]

@1:46

would the principal also be considered the present value?