0:14 in this video lesson we will discuss
0:17 about illustrating simple and compound interest
0:19 interest
0:22 our objectives first illustrate simple
0:24 and compound interest
0:26 and distinguish between simple and
0:29 compound interest
0:32 so before we discuss about simple
0:34 on how to compute simple and compound
0:37 interest so familiar
0:44 so first lender or creditor it is a
0:46 person or institution
0:48 who invests the money or makes the funds available
0:49 available
0:53 so these are lin land institution
0:56 who lets people borrow money or it can be
0:56 be
1:03 borrower adaptor is a person or
1:06 institution who owes the money
1:08 or avails of the pants from the lender
1:38 repayment date or maturity date so it is
1:41 a date on which the money borrowed
1:44 or loan is to be completely repaid so
1:55 on payment based on the agreement or
2:02 time or term so it's amount of time in
2:05 years the money is borrowed or invested
2:08 length of the time between the origin
2:08 and the
2:20 for example or eternal
2:52 borrowed or invested on the origin date
2:54 so the amount of money borrow
3:10 rate it's a annual rate usually in percent
3:10 percent
3:13 charged by the lender or rate of
3:15 increase of the investment
3:49 in what interest rate so mccallum impa
3:52 50 000 so that is
3:55 great so naikita nothing is usually in percent
4:02 interest in interest
4:07 the amount paid or earned for the use of
4:09 money or
4:32 so simple interest is the interest that
4:34 is computed and the principle
4:37 and then added to it discuss nothing and
4:42 compound interest so compound interest
4:45 interest is computed on the principal
4:47 and also in the accumulated
4:50 pass interest at paksinhabi nominated
4:53 maturity value or the future value
4:55 this is the amount of 30 years that the
4:57 lender received from the borrower on the
5:05 no no so after
5:25 so twelve thousand emperor module in
5:27 twelve thousand into a thousand maturity or
5:27 or
5:33 all right so let's say we have a problem here
5:35 here
5:38 suppose you want ten 000 pesos and you
5:39 plan to invest it
5:42 for five years so a cooperative group
5:45 offers two percent simple interest rate
5:48 per year a bank offers two percent compounded
5:49 compounded
5:52 annually so which will you choose and
5:56 why so melter in the wang investment
6:00 no and then try to choose
6:02 ten thousand first using the simple interest
6:03 interest so
6:11 or the origin money is ten thousand at
6:12 two percent
6:19 so that is ten thousand multiplied and
6:21 nothing so in two percent
6:24 converted into decimal so ten thousand
6:26 times zero point two
6:30 y one so uh it means for one year
6:32 no ten thousand times zero point two
6:34 times one that is two hundred
6:38 so e b sub h on ten thousand more to two
6:39 bone and two hundred
6:42 in a two percent interest rate
7:06 after two years so four hundred so
7:09 two years ten thousand
7:12 four hundred in three years so
7:14 so ten thousand times zero point two
7:16 times 3
7:25 600 so therefore
7:38 10 000 times 0.2 times 4
7:41 that is 800 so after four years i'm
7:45 going to i 10 hundred so
7:48 kellen bama tata investment mo after
7:48 five years so
7:52 after five years so mcconaughey
7:54 that is ten thousand times zero point
7:56 two times five
7:58 that is one thousand so a big sub and after
7:59 after
8:02 five years from ten thousand paramount
8:03 is eleven
8:12 yet that is for simple interest so
8:15 using compound interest okay using
8:17 compound interest
8:20 okay same ten thousand times zero point
8:22 two times one
8:55 ten thousand two hundred nano so ten
8:56 thousand two hundred
9:25 is ten thousand four hundred so ten
9:27 thousand four hundred
9:31 at ten thousand four hundred four times
9:34 zero point zero two so the answer is
9:39 280 so from ten thousand four hundred for
9:40 for
9:42 the gangnam two hundred point zero eight
9:43 so after
9:46 three years impera muna i ten thousand
9:57 [Music]
10:00 612.08 times 0.02
10:04 so that is point 212.25 four
10:07 so on paramount after four years is ten thousand
10:08 thousand
10:10 eight hundred twenty four point thirty
10:14 two so park the kingdom five years
10:16 so ten thousand eight hundred twenty
10:18 four point thirty two
10:20 times two percent or times point zero two
10:21 two
10:23 that is equal to two hundred sixteen
10:24 point forty nine
10:27 so a big sub hand pack the thing after
10:28 five years
10:38 eleven thousand forty point eighty one
10:40 so make a basilar simple interest so
10:42 let's compare
10:44 simple and compound interest so it's a
10:46 simple interest
10:49 to move in paramount then 1000
10:59 that will be uh 1040.81
11:02 so e big sub
11:05 hence a simple interest capacity
11:08 investigate remains constant throughout
11:09 the investment term
11:13 in compound interest the interest from
11:14 the previous
11:17 year also earns interest so that's the
11:18 interest grows
11:26 investment in your compound interest question
11:58 invest using simple interest but or
12:01 using compound interest so yanyung
12:04 is sharing yours a comment section and
12:05 ten thousand
12:08 and one people using the simple interest
12:10 or the compound interest so you can
12:12 share your answer
12:20 thank you for watching this video i hope
12:22 you learned something
12:24 don't forget to like subscribe and hit
12:26 the bell button
12:29 put updated ko for more video tutorial
12:31 this is your guide in learning your mod
