e and compound interest | Interest and debt | Finance & Capital Markets | Khan Academy
Sal introduces a very special number in the world of math (and beyond!), the constant e.Created by Sal Khan.
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Finance and capital markets on Khan Academy: This is an older tutorial (notice the low-res, bad handwriting) about one of the coolest numbers in reality and how it falls out of our innate desire to compound interest continuously.
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Пікірлер: 20
'You almost wouldn't mind paying the interest of this mystical number'
been learning economics independently , and your vids are totally awesome
hahah Sal was in a good mood and agreed to lend you money for a "low interest": 100% a year. So funny when you think it as how you were fooled by some loan guy.
I got excited learning about this. Which really makes sal he BEST teacher I could have.
'you almost wouldnt mind paying the loanshark E dollars because its such a beautiful number'
thnx this helped and i don't even study this because I'm in 6th grade, but it still helped me understand it =)
@brandonli9675
6 жыл бұрын
I'm in 6th grade and I am learning this
@timucinaydede3802
5 жыл бұрын
so hows high school now
@SunilSinghss
2 жыл бұрын
so how's life after 8 yrs?
Sir , u are one of the most amazing math teachers in my life , helping me understand things clearly, in fact Crystal clearly . Thank u verry much.
This is the beauty of mathematics
im studying actuarial science. we use the force of interest quite a lot.
Anyone else find yourself getting frustrated at the dope who borrows 1 dollar, and then spends 50 dollars worth of the loan shark's time going through hypothetical repayment scenarios? LOL
@mrsjungkook7759
2 жыл бұрын
I rather got fascinated by how using this could actually rip people off lol
Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it. ' (ALBERT EINSTEIN)
Could you do a video on various limits involving e, not just this one or the factorial one? It would be pretty interesting to see a proof of e = lim x->inf of x/(x!^(1/x))
Yeah, but after x periods, you owe (1+1/n)^(n*x), and that's no good. The rate is 1/n, which becomes increasingly appealing for borrowers, but boy does it hurt after compounding. It's basically the question of: "would you rather pay $2 or $e?" Here's a vivid application. Since the interest per period falls like 1/n, people that are desperate for cash buy things as debt and have to pay back money with interest. These long-period 1/n type loans cause such people to pay back more than they otherwise would. An example of this are 'subprime auto loans', which systematically target low income citizens with bad FICO scores and financial problems. A financially astute individual would never follow a low-interest loan. Fun fact: in 2015 over $1 trillion was borrowed for US subprime auto loans, for the first time ever (accounting for over 1/3rd of all loan transactions). Yes, ladies and gentlemen, this is how people pay 2, maybe 3 times the value of their asset.
What a nice scam.