It’s hard to make good financial decisions if you’re uncomfortable with the mathematics of money. After successfully completing today's videos you'll be able to answer questions based on simple interest and compound interest. With simple interest your earned interest is not returned to your account. When earned interest is returned to your account, and you start earning interest on your interest, we say the interest is “compounding”. After successfully completing these videos, you'll be able to apply the simple interest formula and the continuous compounding formula.
Some vocabulary for exponentials
Simple interest and future value
Continuous compounding and future value
Continuous compounding and present value