Business Math - Finance Math (9 of 30) Present Value for Compounded Interest

[@gerritsteen1475]

today i started my finance marketing. i investet to soon with 200 dollers lost all of it had 50 dollers left went to go watch youre vedio,s remeberd that learnd this in school started doing my maths got all my money back with 50 dollers almost got no food this manth. Thanx alot

[@vusimuzijere4735]

6 years later this is very helpful!

[@MichelvanBiezen]

Glad it was helpful!

[@armstrongntambale5348]

i have been watching ur maths and physics videos sir.now Business maths .you are a genius

[@phuonganhluong1887]

OH MY GOG !!! YOU ARE MY LIFE SAVER!!! PLEASE PLEASE MAKE MORE AND MORE VIDEO BECAUSE YOU MADE UP MY MIND SO MUCH !!!! THANK YOU SO SO MUCH TEACHER !!!!

[@kudzanimasuku539]

Im 57 years old and revising my bachelor's degree. You are really good at this and really should be paid. Thank you

[@MichelvanBiezen]

That is great. All the best to you.

[@seroyshipaul8684]

I wish you were in my university as this course teacher 😊😍

[@kingevil6373]

is it same programe with the university

[@ryanchivari5857]

@@kingevil6373 no, his point is his teachers at his uni are awful. As is my teacher.

[@daniel343ful]

32 years later I learn what PV means.

[@ismailabdi2354]

I don't usually write comments, but I really felt the need to write it this time. I am going to start university soon next month and i am Majoring in Finance. Thanks to your videos I feel I am ahead of the game.

[@MichelvanBiezen]

All the best on your new adventure in life.

[@ranok29]

Wish we had more teachers like you.Thanks for your help!!

[@MichelvanBiezen]

Happy to help! Pass the word....🙂

[@YeabsiraDegu-ft9nb]

Great full explanation

[@MichelvanBiezen]

Thank you.

[@AnhNguyen-mp9ms]

at 3:52, when you change the rate from 5% to 2%, do we need to calculate the Accumulated amount again, teacher?

[@AnhNguyen-mp9ms]

oh, i understood. thank you teacher!

[@MichelvanBiezen]

Great. You figured it out. 🙂

[@AnhNguyen-mp9ms]

@@MichelvanBiezen im going to take the final exam for Mathematics for Business next week. Your videos are definitely useful! - from Vietnam with gratefulness!

[@MichelvanBiezen]

All the best on your exam. Welcome to the channel! 🙂

[@mr.f6912]

Question: If you change the percentage rate for the equation (as you did with %2 and %12), then don't you have to change the accumulated amount? Because then you would be using 2% as your rate when your accumulated amount is calculated using the 5% rate. Thanks so much for your videos.

[@MichelvanBiezen]

You can see that if you want to end up with PV of $16,470.09 and the money is invested at 5% you can start with $10,000. But if you have the money invested at only 2% you will have to start with a higher amount: $13,486.81

[@mr.f6912]

@@MichelvanBiezen oh that clarifies it. Thank you so much for taking the time to respond!

[@east04k28]

jy is regtig goed daarmee om te verduidelik. baie dankie :)

[@quiz36O]

I wish my math professor could explain just like you. it makes me crazy that when we can learn great stuff online easily for little money or completely free, we have to go to expensive colleges and learn nothing. Why? because to get a job, in this society, you must have a diploma.

[@MichelvanBiezen]

Yes, you are correct and we hope that in the future there will be more opportunity to earn degrees in other ways. We were college students once and yes, we had some amazing professors that did a great job teaching, but unfortunately they were in the minority. That is part of the reason we make these videos.

[@ivornworrell]

*Hello Mr van Biezen, Can you please tell me if by using the PV formula for an ANNUITY, with all the variables known except r (the int rate) , if it is possible to know what r is? It seems virtually impossible to me to make r the subject of the PV formula for an Annuity, but one might need to know at what rate % to invest periodic pmts into an annuity in order for the annuity to amount to a certain/specific future value. Thank you.*

[@taekwondotime]

*i = The Nth root of (F/P), then subtract 1* . where i = r/m. Therefore r = im (There's no EASY way to write mathematical formulas in the KZbin comment section but what I wrote above is the CORRECT formula.) For his example above: i = 120th root of (16,470.09/10,000.00) - 1 ~= 0.00416 0.00416 x 12 compoundings per year = 0.05 = 5% interest rate. Done.

[@taekwondotime]

*Using his example, here are the values for all the variables:* P = $10,000.00 F = $16,470.09 m = 12 compounding periods per year t = 10 years n = mt = 12 x 10 = 120 total compounding periods r = 5% = 0.05 i = r/m = 0.05/12 = 0.0041666666... Now my previous comment should make more sense. :) TIP: Don't write P as PV, because that implies two separate variables. It's just P.

[@ivornworrell]

@@taekwondotime understood, but how did you arrive at r=5% inn the first place?

[@ivornworrell]

@@taekwondotime Thx for taking the time to explain.

[@taekwondotime]

@@ivornworrell I didn't. I'm just showing the value of all the variables in the problem once it's solved so that you can see what everything is. That way the formula I posted makes sense. :)

[@mycaroxas4088]

You good sir are underrated!!

[@anapaulaaustria7592]

I'm learning too much with you videos but I have a question, if you have time at 6 years and 7 months compounded semi-annual how do you calculate this to find n? I've been trying to find some examples like this but I can't find anything, please sombody help me is too difficult.

[@MichelvanBiezen]

The exponent represents the number of months. Therefore mt = 6 x 12 + 7 = 72 + 7 = 79

[@Dietitionist.official]

This was wayy simpler than I thought 😁

[@curtpiazza1688]

Beautiful explanation! 😊

[@MichelvanBiezen]

Thank you! 😃

[@johnkwiecinski2111]

Thank you so much! Big exam tomorrow!

[@rafaelbawono8437]

yep still learning... awesome

[@leylasolmaz3978]

please keep on posting new videos about finance math sir! you are my life saver all of my college topic! thank you so muuuuch! ps: 12. 13. 14. videos are private. I can not see.

[@MichelvanBiezen]

leyla watson Yes, they will be made public in a couple of days. Thanks for watching.

[@Macgee23]

Can simple interest be computed daily

[@MichelvanBiezen]

It could, but that is not typical. If computed daily and added to the principal then it becomes compounded interest.

[@oguzhanaras3662]

thank you.very good video.I strongly believe that I am going to pass the exam :)

[@MichelvanBiezen]

+oğuzhan ARAS Please let us know how you did.

[@oguzhanaras3662]

+Michel van Biezen only believe yourself,say yourself you can do and struggle :)

[@9kiwu]

Thanks Michel!!

[@MichelvanBiezen]

Glad you found our videos! 🙂

[@marylinenanga]

He is amazing

[@markwilfredfermin9759]

You Saved from not repeating Senior Highschool

[@Clifffffffffford]

Thanks!

[@ryanmartin196]

Superb...

[@MichelvanBiezen]

Thanks 🤗

[@hawitesfaye3123]

Exercise

[@MichelvanBiezen]

Hope you liked it 🙂

[@abdoubouh715]

To much easyyyyyyyyyyyyyyyyyyyyyy math. I can do it with eyes closed

[@MichelvanBiezen]

Great! Glad you liked the video. 🙂