$5000 is invested for 10 years at 6% compound annual interest - how much did the investment earn?

How to calculate compound interest using the compound interest formula. This video will explain compound interest and how to find the value of an investment that is compounded annually. Also, I will explain the power of compound interest and exponential functions.
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[@bucksindiapaleale64]

Don't care what the answer is...just tell me who is giving you 6% so I can invest there as well.

[@bucksindiapaleale64]

Compounded annually = $8954.24 Compounded quarterly = $9070.09 Compounded monthly = $9096.98 Compounded daily = $9110.14

[@mikedickerson1978]

6% interest on your investment is pretty unrealistic these days. You'd be lucky to find anything that yields any more than about .5% interest.

[@MikeOtranto]

I pay my investors 10% simple interest

[@MikeOtranto]

I love this channel! Do you have a course or series of videos that deal with probability and statistics?

[@richardduggar4665]

He probably does statistically speaking

[@mike-yp1uk]

All my life this simple formula eluded me but I get it 40 years later.

[@ATrainGames]

Good stuff. Run this forward... And by the time you hit year 22 you start making $1000 annually in INTEREST, kids. :D Thanks for sharing!

[@pas6295]

Formula is P=P(1+R/100)the whole to the power of 10. The answer is new Principle minus the initia one gives how much you earn as interest

[@TheNewGreenIsBlue]

5000 x 1.06^10 =8954.24 $3954.24 gain, or 79% gain over 10 years.

[@rogerdudra178]

Greetings from the BIG SKY. This is the math I used in a program I wrote.

[@dolfrobz8457]

Hello, do you have or could you recommend a great program (to practice math over and over) to study college algebra for a clep test, thank you so much! Great video.

[@tomtke7351]

uH.... right here?

[@mariadesir75]

I am so grateful for my 7th grade math teacher, I am SOOOOOOOO financially wise because of the TIME he INVESTED in his students. So grateful for awesome LEADERS like yourselves.

[@tomtke7351]

cannot recite formula but it's easy to find on the internet: "compound interest formula." A one semester college class for professional engineering focused on money and interest. It was an amazing class and a real eye opener. Just because you have a structured settlement for 10 years at $1,000 a year doesn't mean you qualify at the beginning for a lump sum of $10,000.

[@Moneykingkevo]

That's if you stop adding to your principal... keep adding to it you will reach your goals before 10 years

[@jimwhitmer7957]

$3,954 earned.

[@Moneykingkevo]

How long it took you and what was your APY ?

[@Moneykingkevo]

It's definitely powerful mines went from 36 cent 1.80 4.45 in 3 months might be looking at close to 10 dollars next month

[@dwaipayandattaroy9801]

6/100* 5000 = 300. new baland First Year is 5300 now 6/100 * 5300 = 318 and Year NB = 5618 kind Compound 8 more years

[@jimwhitmer7957]

Actually- $3,954.24

[@robertarguello1115]

Thank you!

[@philwhite5815]

Where did you come up with the 1 (1+.06)?

[@richardduggar4665]

The 1 in (1 + 0.06) is 100% of the principle and 0.06 is the interest on the principle both as decimals

[@richardduggar4665]

You could write it as 5000(100% + 6%)^10

[@kennethwright870]

5,000*1.06^ 10=$8,954.24, so return on investment = $3954.24 & return of investment = $5000….

[@dkhnova]

Though it's often repeated, there's no valid source for that Einstein "quote".

[@seekingtruth9677]

who pays my account the compound interest the stocks or the brokerage account. how and when is it paid out monthly?

[@posh0610]

My calculator tells me that 5000x 1.79 equals 8950 exactly. Should I get a new one?

[@9672justemor]

That’s what I’m wondering too

[@Tury1799]

same lol

[@Tury1799]

ok so i know what happened. when you do the interest rate 1.06^10, the number you get, multiply that whole number that is in the calculator by 5000

[@stevenkaplan2376]

You should have made it simple and done it on a calculator as a visual memory aid Good video though!

[@TheStefanoconnor2]

How did you get that when I do 5,000 x 1.79 on my calculators it say it's $8,950

[@danielcase1046]

we only have to figure out which law to apply

[@yannicburke6723]

Can give an examples $500 for 2 yrs @20%

[@jefferywise1906]

At what tax rate… final income isn’t what you earn it’s what you get.

[@danielcase1046]

well we have to include inflation

[@ElviraSongalla]

13:15donereplayed

[@Moneykingkevo]

Create your own APY by opening up multiple savings accounts no single account gonna offer 6% ...go get this bag he trying to teach you to get

[@betisami336]

Complicate.

[@danielcase1046]

What will happen if money and things become valueless?

[@danielcase1046]

that's easy, just follow your instincts