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ILLUSTRATING SIMPLE AND COMPOUND INTEREST || GRADE 11 GENERAL MATHEMATICS Q2 | WOW MATH | YouTubeToText
YouTube Transcript: ILLUSTRATING SIMPLE AND COMPOUND INTEREST || GRADE 11 GENERAL MATHEMATICS Q2
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Video Summary
Summary
Core Theme
This video lesson explains and illustrates the concepts of simple and compound interest, highlighting their differences and demonstrating how to calculate them with a practical example.
in this video lesson we will discuss
about illustrating simple and compound interest
interest
our objectives first illustrate simple
and compound interest
and distinguish between simple and
compound interest
so before we discuss about simple
on how to compute simple and compound
interest so familiar
so first lender or creditor it is a
person or institution
who invests the money or makes the funds available
available
so these are lin land institution
who lets people borrow money or it can be
be
borrower adaptor is a person or
institution who owes the money
or avails of the pants from the lender
repayment date or maturity date so it is
a date on which the money borrowed
or loan is to be completely repaid so
on payment based on the agreement or
time or term so it's amount of time in
years the money is borrowed or invested
length of the time between the origin
and the
for example or eternal
borrowed or invested on the origin date
so the amount of money borrow
rate it's a annual rate usually in percent
percent
charged by the lender or rate of
increase of the investment
in what interest rate so mccallum impa
50 000 so that is
great so naikita nothing is usually in percent
interest in interest
the amount paid or earned for the use of
money or
so simple interest is the interest that
is computed and the principle
and then added to it discuss nothing and
compound interest so compound interest
interest is computed on the principal
and also in the accumulated
pass interest at paksinhabi nominated
maturity value or the future value
this is the amount of 30 years that the
lender received from the borrower on the
no no so after
so twelve thousand emperor module in
twelve thousand into a thousand maturity or
or
all right so let's say we have a problem here
here
suppose you want ten 000 pesos and you
plan to invest it
for five years so a cooperative group
offers two percent simple interest rate
per year a bank offers two percent compounded
compounded
annually so which will you choose and
why so melter in the wang investment
no and then try to choose
ten thousand first using the simple interest
interest so
or the origin money is ten thousand at
two percent
so that is ten thousand multiplied and
nothing so in two percent
converted into decimal so ten thousand
times zero point two
y one so uh it means for one year
no ten thousand times zero point two
times one that is two hundred
so e b sub h on ten thousand more to two
bone and two hundred
in a two percent interest rate
after two years so four hundred so
two years ten thousand
four hundred in three years so
so ten thousand times zero point two
times 3
600 so therefore
10 000 times 0.2 times 4
that is 800 so after four years i'm
going to i 10 hundred so
kellen bama tata investment mo after
five years so
after five years so mcconaughey
that is ten thousand times zero point
two times five
that is one thousand so a big sub and after
after
five years from ten thousand paramount
is eleven
yet that is for simple interest so
using compound interest okay using
compound interest
okay same ten thousand times zero point
two times one
ten thousand two hundred nano so ten
thousand two hundred
is ten thousand four hundred so ten
thousand four hundred
at ten thousand four hundred four times
zero point zero two so the answer is
280 so from ten thousand four hundred for
for
the gangnam two hundred point zero eight
so after
three years impera muna i ten thousand
[Music]
612.08 times 0.02
so that is point 212.25 four
so on paramount after four years is ten thousand
thousand
eight hundred twenty four point thirty
two so park the kingdom five years
so ten thousand eight hundred twenty
four point thirty two
times two percent or times point zero two
two
that is equal to two hundred sixteen
point forty nine
so a big sub hand pack the thing after
five years
eleven thousand forty point eighty one
so make a basilar simple interest so
let's compare
simple and compound interest so it's a
simple interest
to move in paramount then 1000
that will be uh 1040.81
so e big sub
hence a simple interest capacity
investigate remains constant throughout
the investment term
in compound interest the interest from
the previous
year also earns interest so that's the
interest grows
investment in your compound interest question
invest using simple interest but or
using compound interest so yanyung
is sharing yours a comment section and
ten thousand
and one people using the simple interest
or the compound interest so you can
share your answer
thank you for watching this video i hope
you learned something
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