Compound interest introduction | Interest and debt | Finance & Capital Markets | Khan Academy

Learn about the basics of compound interest, with examples of basic compound interest calculations. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/compound-interest-tutorial/v/the-rule-of-72-for-compound-interest?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing). This tutorial gives an introduction to this fundamental concept, including what it means to compound. It also gives a rule of thumb that might make it easy to do some rough interest calculations in your head. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacadem

Comments

1. This really helped me with my homework
2. omg this saved my life. thank you so much! :D
3. i got 8ish years--anyone else?
4. great vid! btw you sound like dj vlad...hehe
5. I k ow your trying to help, bit I cNt see anything on the screen behind you.
6. mr.khan
   no offence but its kinda confusing...
7. Nice
8. Thank u man really helpful vid
9. Very Helpful Thanks For The Video
10. I really really really wish he would have solved this. I was following and then realized he wasn't going to solve. Aarrggg! C'mon!!
11. when i grow up i wanna be a calculator
12. Your amazing dude.
13. I could not understand it well
14. What app is he using
15. Helped a lot Thanks!!!
16. Thanks, this was pretty helpful.
17. Thank you for this video! In school I was only given the compounding interest formula, which I never understood how it worked, and then told to just plug numbers into the formula and get my answer . After this explanation I see how the formula works. Can't believe I never realized what the (1 +r) part was doing this entire time!
18. So if we just knew how long it took $100 to double --- then we would have a good idea of how this works. So how long does it take $100 to double at 10% interest??? You don't tell us --- why not? Then I would get compound interest at work.
    If it did not compound then I would get $10 each year - and I need another $100 to double the amount. So the answer is 10 years to wait for it to double without compounding. since it does compound---- probably takes about 9 years. It is that simple.
19. frustrating. So how long does it take ........already. Apparently a long time if you
    are writing it out and then not telling us. ahhhhhhhhhhhhhhh!