Compound Interest and e (part 2)

[osclarkos]

Very enjoyable thank you

[jayejayeee]

some great inforamtion here thanks

[rodswebdesign]

really informative and interesting

[MrJonkelp]

some great inforamtion here thanks

[GreatVgnc]

Hey, but how would you do the limit of the compound interest without any reference to e?

[redz19761]

areeee ...mamu....apnaare wikipedia,,,,maira dehi ,,,apnee bangali,,,,,you made me proud man..!!!..it doesn't happen very often...... love your videos,,,,,

[themin91]

how did you get 1.00274?

[GerardoArwi57]

@themin91 100% divided by 365 equal 0.27%. You want to convert that percentage into decimal.

That means, 0,27 / 100 = 0.0027

After that, you add 1 to it. 1 + 0.0027= 1.0027

He have a slight miscalculation there. It should have been 1.0027 NOT 1.027

[behnamasid]

So "e" was discovered as a consequence of greed. 

[TheScars75]

i want to compound down to the nanosecond

[afreakenracoon]

HELP!!!

a car was bought for 25000$, each year it depreciates by 15%...

a) write an exponential formula that demostrates the cars value in (n) amount of years after it was purchased/

b) what is the cars value at the end of 3 years

c) after how many years will the value of the car be half of the original price?

PLZ HELP!!!! THANK YOU!!!

[RavellaMusic]

@afreakenracoon Now that we're not doing your homework for you (unless you get a year in which to do it - this isn't some kind of postgraduate thing, is it? ;) ) - the formula is A = P(1-i)^t, where P is the original amount (250,000), i is the interest in the form of a decimal (.15) and t is the elapsed time in years. So to calculate for three years, it's 250,000 times (1-0.15) to the power of 2. (amount time has changed by since P.)

[RavellaMusic]

@RavellaMusic Balls, no, it's to the power of 3. I was thinking of something stupider.

[Overlapse1000]

cahan, o.2 percent of object, impact of t(12/1)+%(100)=(at%)agregate percentile quantity, structure is contract of exchange purpose, means, and terms. Possesion of material and means of exchange, exchange binding contract period, terms of debt, method and type of debt remmitance, remmitance accord of the exchange contract(contract remmitance value, tax, and interest. ("2.71 actually comes out to 2.72")

[Overlapse1000]

cahan, o.2 percent of object, impact of t(12/1)+%(100)=(at%)agregate percentile quantity

[qatari5898700]

Khan, you are amazing !!

I understand from you more than professor and books !!

I hope that the world could appreciate you in your great videos which helped thousands of people in this world.

Im sure in near future you will be a difficult number in the education field.

[Fanglez]

is the 'squeeze theorem' learnt in university?

[rinwhr]

@Fanglez yeah

[mochilla777]

garymarkhov, what's ya problem man ? :) the limit theorem on e is one of the basic facts of algebra. the number you're referring to is acutally 2.71812669161791 ( and it's not like waaaay more

than 2.71443) keep it real yourself :)

[garymarkhov]

Sal, your videos are teh awesome! Thanks so much.

Minor note: (1+1/8760)^8760 is waaaaaaaaaaaay more than 2.714433. I know that's what you get if you just use 0.000114, but when you're raising that beasty to the power of 8760, the stuff that comes after the billionths place MATTERS! The correct number is 2.71812666444. Come on man, didn't you notice something was up when the hourly compounded figure came out lower than the daily compounded figure?

Keep it real :)

[idster7]

@garymarkhov i was wondering what was up with that. thank you.

[shinuito]

@garymarkhov I'm getting 2.71812669162 man using open office calc. and 2.718126692 using a normal scientific calc. since they don't have as much computing power or space to display as many decimals.

[joe9943]

hai and thankyou.i understood the concept of ci very well with the help of these videos

[underscorewill]

I think it's unfair to appeal to a prior knowledge of what the number "e" is.

[timetraveler3797]

It seems only worth it though if the amount was a large number to begin with, since there is no way to expect a fraction of a cent payment. If a million

[kittykattykoo]

e just blew my mind.... :D

[andyct1982]

I agree. As n goes to infinity I'm reminded of the squeeze theorem. You squeeze to infinity. It's trippy if you ask me. Get blazed and think of it. You just keep squeezing to a limit that is never ending.

[kittykattykoo]

^_^

[OntologicalQuandary]

you cant use the squeeze theorem on infinity lol

[andyct1982]

well its not on infinity its to infinity.

[andyct1982]

im not being mean so please dont take what i said as an insult.

[OntologicalQuandary]

lol what? I am just saying you cant squeeze something as it approaches infinity. You need a definite point to squeeze prove a limit

[andyct1982]

i think there is an infinite amount of numbers that approach that point. like 0.99999---> infinite 9's til i get to 1.0, or something like that.

[OntologicalQuandary]

correct, but 1 exists. The squeeze theorem says if two limits approach 1 (or some number that EXISTS) and there is an unknown limit that is between those two limits, it HAS to be the same limit. You can't squeeze to infinity, because one of the equations would have to be "less than infinity" and the other would have to be "more than infinity" which are both nonsense descriptions because infinity doesn't exist in the same sense than 1 does.

[andyct1982]

okay

[machvis]

GOOD JOB SAL! I want to share an interesting probability problem, should I post it here or send it to your email?