Compound Interest

Power of Compound Interest

In this video, we are taking a look at what the compound interest is and how important it is during a longer timeline.

Overview

• What is compound interest?
• The big difference: simple interest vs. compound interest
• Compound interest formula
• Importance of the compounding period
• Questions to ponder

Helpful Links

• Retirement Calculator. Use it to have a look at the difference in savings if you start saving now vs. in 10 years.
• Advanced Loan Calculator. If you’re trying to pay off your debt, you can use this calculator to see how much money you’ll save by either getting a lower APR or paying it off in larger chunks.

Previous video: Time Value of Money