What is compound interest?

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  • čas přidán 25. 08. 2024

Komentáře • 117

  • @user-tr8xd3uy3h
    @user-tr8xd3uy3h Před rokem +17

    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!

  • @metgirl420
    @metgirl420 Před 8 dny

    Still helping folks after all these years. Wonderful job!

  • @gliterott
    @gliterott Před 3 lety +186

    Maybe im the one that's slow

  • @elizabethcarrillo3892
    @elizabethcarrillo3892 Před 2 lety +9

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

    • @luckyloonie1359
      @luckyloonie1359 Před měsícem +1

      5:55 If you bank with #MeridianCU💳 then your assets are safer and better interest rates than most big banks🇨🇦! 🌎💘💰

  • @ifeanyichukwuidoko6599
    @ifeanyichukwuidoko6599 Před 2 lety +10

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

  • @lee2607
    @lee2607 Před 3 lety +34

    This was extremely helpful, thank you!

  • @favourazah1504
    @favourazah1504 Před 2 lety +69

    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 ...

    • @andrewblack4432
      @andrewblack4432 Před 2 lety

      Put it in a bank .

    • @favourazah1504
      @favourazah1504 Před 2 lety

      @@andrewblack4432 Thank you ,but that’s not a good idea for me .

    • @grantstanley6039
      @grantstanley6039 Před 2 lety

      @@andrewblack4432 😂😂 putting money in the bank can't make you richer .

    • @grantstanley6039
      @grantstanley6039 Před 2 lety +1

      If you’re to Die Today , which is very possible,Your Children will not inherit your degrees or your current position in the company or organization you work for from 8am to 5pm . Kids inherit Businesses/investments.Think about this throughout this Month.

    • @jamesjude4988
      @jamesjude4988 Před 2 lety

      @@grantstanley6039 💯

  • @eranshalom1336
    @eranshalom1336 Před 3 lety +25

    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.

    • @pete7397
      @pete7397 Před 3 lety

      yea..but it's good folklore

    • @zennir48
      @zennir48 Před 2 lety

      it called. Clickbait :)

  • @gaweindegraaf
    @gaweindegraaf Před 8 měsíci +4

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

  • @gsgames6619
    @gsgames6619 Před 3 lety +5

    I gave Like for ur creativity 😃

  • @renv6653
    @renv6653 Před 3 lety +8

    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

  • @Apparel869
    @Apparel869 Před 2 lety +1

    Excellent illustration to get your point across 👌 👍 👏 😀

  • @prajapatihasmukhbhai7280
    @prajapatihasmukhbhai7280 Před 2 lety +3

    Really helpful great job

  • @prajapatihasmukhbhai7280
    @prajapatihasmukhbhai7280 Před 2 lety +2

    Wows thanks great work

  • @passionx
    @passionx Před rokem +2

    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)?

  • @Dhanush-zj7mf
    @Dhanush-zj7mf Před rokem

    great efforts in making the video!! Thanks

  • @TR-vh1fi
    @TR-vh1fi Před 2 lety +8

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

    • @joelwinta8935
      @joelwinta8935 Před rokem +1

      S$p 500 has annual return of 10%

    • @sheriffaminkebe776
      @sheriffaminkebe776 Před rokem

      @@joelwinta8935 how mate?

    • @LettingHellLooseGaming
      @LettingHellLooseGaming Před rokem +1

      @@sheriffaminkebe776 S&P 500 ETF. It is based off the 500 top companies in the US, historically it has always grown.

    • @F1KU
      @F1KU Před rokem

      This aged well. Now no banks will give you less than 2%

    • @peace-a
      @peace-a Před 6 měsíci

      But don't high yield savings account currently offer approx 4% monthly interest? Don't those interest earnings compound monthly??

  • @WhatIfANDHow991
    @WhatIfANDHow991 Před 4 měsíci

    Good visualization!

  • @John-jo4mb
    @John-jo4mb Před 3 lety +2

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

  • @ozdoits
    @ozdoits Před 3 lety +6

    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?
    🙏🌼

  • @kaydiankerr
    @kaydiankerr Před rokem

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

  • @jonneycarlos8179
    @jonneycarlos8179 Před rokem +5

    These past few days watching my crypto portfolio decline is very disheartening. Holding doesn't really profit much. Any ideas on how to earn better on the short run?

    • @evamason2471
      @evamason2471 Před rokem

      Short term trading is much preferable considering the
      current market fluctuations.

    • @fatherjac6228
      @fatherjac6228 Před 8 měsíci

      also prolly just find a good etf and stop worrying ab crypto

  • @kathleenlouise1208
    @kathleenlouise1208 Před 3 lety +1

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

  • @christopherngeleoma
    @christopherngeleoma Před rokem

    thanks for your teching

  • @jonathangeorge3404
    @jonathangeorge3404 Před rokem +4

    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.

    • @shaerose1253
      @shaerose1253 Před rokem +2

      Hey! I figured it out. You dont withdraw anything. Youre right that 1000×5% = $50. Thats year 1. Remember, in the example you put 1000 in each year for 30 years. Each year the account gains interest of 5% on the CURRENT yearly balance. So year 1 is 1000, year 2 is 2000, year 5 is 5000, and year 30 is 30,000. You keep doing the 5% math on each of those for 30 calculations (1000×5%, 2000×5%, 5000×5%, 17,000×5, etc) the answer you get from aaalll of those comes out to 23,250 that she got. I did the math myself and got to the same number! Hope this helps!

    • @shaerose1253
      @shaerose1253 Před rokem +2

      Combine your answers for all your numbers multiplied by 5 percent, and it'll get you to $23,250, to clarify! ❤️

    • @gavin6381
      @gavin6381 Před 9 měsíci

      @@shaerose1253thanks

  • @RedFox110
    @RedFox110 Před 3 lety

    Wow Thanks Great work

  • @ayeshaadhikari6123
    @ayeshaadhikari6123 Před 3 lety +1

    woah this was fun!

    • @canstar
      @canstar  Před 3 lety +1

      We're glad you liked it!

  • @dosomthin.2650
    @dosomthin.2650 Před 2 lety +1

    Those who didn't understand noticed that she was drawing with her left hand

  • @drjesuselshaddai9537
    @drjesuselshaddai9537 Před 2 lety +1

    How did she get 23 250?

  • @nancyborja6768
    @nancyborja6768 Před 9 měsíci

    You earn more on compond interest than in Simple interest?

  • @angryidahobusdriver
    @angryidahobusdriver Před rokem

    Easy to understand

  • @prajapatihasmukhbhai7280

    I liked this video and i appreciate❤

  • @kennytheclown3859
    @kennytheclown3859 Před rokem

    Makes sense.

  • @tasninnewaz6790
    @tasninnewaz6790 Před 2 lety

    What is the dimension of this paper?

  • @ayushkataria1200
    @ayushkataria1200 Před 4 lety +3

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

    • @canstar
      @canstar  Před 4 lety +1

      Thanks for the feedback, Ayush! We're glad you enjoyed the video.

  • @stormrider1375
    @stormrider1375 Před rokem

    "If only statesmen had been compelled to study law of the laws of Compound Interest, the fate of the whole human race might have been very different." - William Joyce, "Twilight Over England", 1940

  • @Lotus-Subliminals-Shorts

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

  • @AcidSh33tz
    @AcidSh33tz Před rokem

    Wait where tf did the 18 cents come from WTf?

  • @nerdstudybird4952
    @nerdstudybird4952 Před 3 lety +10

    Gonna be honest, never been so confused in my life.

    • @elijahjupiter3650
      @elijahjupiter3650 Před 3 lety +8

      SAME!!!! n the drawing keep straying me away on wat she was saying 😂

  • @shaunakbhangre1612
    @shaunakbhangre1612 Před 3 lety +1

    it sucks...i coudnt understand shit..im watching another video..appre for making the efforts and helping others understand tho.

  • @thevalue7284
    @thevalue7284 Před 2 lety +2

    Not so understanding

  • @andreluydens2602
    @andreluydens2602 Před rokem

    My parents know about it but they say they're too busy to do it

  • @eNOughPlaY2006
    @eNOughPlaY2006 Před rokem

    not understood

  • @acx2269
    @acx2269 Před 6 měsíci

    You can get 4.9% with anz

  • @shivdatt780
    @shivdatt780 Před 2 lety +1

    Helplass🙄😉

  • @jakefromfarmstate2283
    @jakefromfarmstate2283 Před 9 měsíci

    So.. simple interest is when it is applied yearly, and compound interest is when it is applied monthly?

  • @devantejeffries3810
    @devantejeffries3810 Před 10 měsíci

    The secret is in the percentage of your weekly check

  • @sumanchettri3163
    @sumanchettri3163 Před 4 lety +1

    Thank YOu

  • @jemo1574
    @jemo1574 Před rokem

    interests make the rich richer and the poor poorer it's haram all the way
    thx for explanation

  • @blackspiderman1887
    @blackspiderman1887 Před 2 lety

    I prefer simple interest

  • @thevalue7284
    @thevalue7284 Před 2 lety +1

    It is to fast

  • @RedFox110
    @RedFox110 Před 3 lety

    Nice effort

  • @ch4rli3j24
    @ch4rli3j24 Před 3 lety +2

    I’m becoming a millionaire soon

  • @TheDjiMini2
    @TheDjiMini2 Před rokem

    Use a white board

  • @crazyboysince1998
    @crazyboysince1998 Před 8 měsíci

    Seems kinda silly to me as it would take over 10 years before that 1 grand became two grand at 2% a year. Actually it would be maybe 1200 in 10 years 😂

  • @luckyloonie1359
    @luckyloonie1359 Před měsícem +1

    5:55 If you bank with #MeridianCU💳 then your assets are safer and better interest rates than most big banks🇨🇦! 🌎💘💰

  • @dennisb2784
    @dennisb2784 Před 2 lety

    hmmmm

  • @Dizzle72
    @Dizzle72 Před 11 měsíci

    Still don’t understand it. Guess I’m gonna keep paying it 😂

    • @xhunter1003
      @xhunter1003 Před 4 měsíci

      This the 5th video i see and still dont understand 😂

  • @MatiasPeruYT
    @MatiasPeruYT Před 4 lety +4

    buuuuuuuuuuuu

  • @-ivanaguzman-3600
    @-ivanaguzman-3600 Před 3 lety

    Holis hay alguien aquí que hable español 😁 ya se es raro encontrar a alguien que hable español en un video que se habla en inglés pero culpa mía no es por que en una clase que se llama finance & organic hay que poner un video que hable de interés simple y compuesto pero en inglés por que esas clases o clase es en inglés ok chao me responden los que si saben inglés o entendieron ok chao ✌️

  • @RachaelMuto
    @RachaelMuto Před rokem

    You so fast

  • @hbsyvusb
    @hbsyvusb Před rokem

    Maybe I’m the one that’s trippin

  • @danielmcdonagh9400
    @danielmcdonagh9400 Před 3 lety

    roses are red violets are blue i came here for homework and i know you did to

  • @DannysTools
    @DannysTools Před 2 lety

    its haram bro

  • @FloridaMan69.
    @FloridaMan69. Před 8 měsíci

    Creamy AnaI

  • @mokshgupta8232
    @mokshgupta8232 Před 3 lety

    Really helpful
    Great job

    • @canstar
      @canstar  Před 3 lety

      We're happy to hear that!