Lesson Summary [Copy]

Lesson Summary [Copy]

Published on 11 April 2023
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Transcript
00:00
Simple Interest
00:05
Simple Interest
00:05
A QUICK METHOD OF CALCULATING THE INTEREST CHARGED ON A LOAN
00:09
IT IS A FIXED PERCENTAGE OF THE ORIGINAL PRINCIPAL AMOUNT,  WHICH IS CALCULATED FOR A SET PERIOD OF TIME
00:15
SIMPLE INTEREST = P x I x N
00:16
P - THE LOAN AMOUNT
00:17
I - THE INTEREST RATE
00:18
N - THE DURATION OF THE LOAN
00:25
BENEFITS OF A SIMPLE INTEREST LOAN
00:27
EASY TO UNDERSTAND
00:28
PREDICTABLE PAYMENTS
00:29
LOWER OVERALL COST
00:31
FLEXIBLE REPAYMENT TERMS
00:36
$1,000 FOR 2 YEARS 5% SIMPLE INTEREST RATE
00:38
1000 X 5% X 2  OR $100
00:51
Compound Interest
00:51
THE INTEREST EARNED ADDED TO THE PRINCIPAL AMOUNT, AND THEN THE NEW TOTAL AMOUNT EARNS INTEREST IN SUBSEQUENT PERIODS
00:55
INTEREST IS EARNED NOT ONLY ON THE ORIGINAL PRINCIPAL AMOUNT,  BUT ALSO ON THE ACCUMULATED INTEREST THAT HAS BEEN ADDED TO IT.
01:00
COMPOUND INTEREST = P [(1 + I)^N – 1]
01:02
P - THE PRINCIPAL AMOUNT
01:03
I - NORMINAL ANNUAL INTEREST RATE
01:04
N - NUMBER OF COMPOUNDING PERIOD
01:09
$1,000 FOR 2 YEARS 5% SIMPLE INTEREST RATE
01:11
1000 X 5% X 2  OR $100
01:20
Write Conclusion here
01:21
Write details for the next lesson and what is upcoming