everybody stop. he's talking the language of the gods

Thanks, really helpful to understand where the formula comes from rather than just typing it in at the exams :D

I know this is really late, but thank you Sal so much for this video. Really helped me out understand this in 8 minutes when I couldn’t in a whole hour.

Man i have been in trouble understanding this easy notion eventhough i have a bachelor in economics. Grateful for your videos !

I don't get how my math book didn't include such a simple helpful equation.

@gabrielgan2971

3 жыл бұрын

Ikr, same here, if they included this explanation, I wouldn't have been so confused

Hahaha! I was just watching Futurama's older episodes... 93 cents at 2.25 interest for 1000 years was about 4.28 billion... Searced it and saw all these different arguments for compounding interest. Khan's tha mannnn!

watching this and being able to understand it just makes me feel so much love. thank you

Thank you very much. This is the only channel clearly explained how the formula comes from

Sal: Writes seriously confusing expressions Also Sal: "oh, by the way, these expressions can be written in 4 letters"

This is great Sal. Thank you very much - very well explained.

Very simple when laid out like this, thank you!

Loansharking 101

You guys: *explain stuff in a very good way* Me, being dumb: I don’t get it anyways I love this channel and would be forever stuck without it

khan literally knows everything

Thank you so much for sharing the mathematical derivation as well!

imma put this formula as my wi-fi password

Wow you made me wait 8 minutes and 40 seconds to tell me compound interest =Pe^(rt)

@Ash-ii4hg

3 жыл бұрын

True, but he explained how it works. I mean, you really can just do a Google search if you really want to know, but you can’t fully get it just by that. Here it instead shows how the equation is made and why it works out, a lot more important in my opinion.

Great video, and explanation.

Thanks a lot!

KhanAcademy probably mentions this in another video. However, for a quick way to get doubling time (useful for checking results). Doubling time = 72 divided by rate of increase. (plz note, it introduces some inaccuracy) ie, 6% interest per year = 72/6 = 12 = doubling time of 12 years. ie, the initial quantity will double in 12 years with a 6% rate of increase. This shortcut might be good as a the subject of a video.. ie, why is it that 72 works like this? I get it intuitively, imagining a function curve, but have never seen it explored/described properly.

it very interesting working it

Thank you!

Nice...

@4:32 the whole goal is fuckin to get ... lol

Thanks sir

I think you forgot to add 1 50(1+0.10)^3 =66.55

wow. i got the aha moment

He is too smart

Subscribed.

So we can use either formulas right? The one we started with in the beginning and the one we derived by the end?

how do you make this an exponential function so that I can graph it?

Infinity is magical

But if 0.05 is the annual compounded rate, isn't the continuously compounded rate = ln(1+0.05) and not 0.05?

7:48 "all of that is equal to E" yes, guys, even Sal Khan agrees that whatever happens, everything comes back to the E (you know what time it is...)It's meme review time

is this the same thing as in engineering economics?

I like how used up the calculator looks

Is this on the app?? I don't see it!

How do you input this into a financial calculator comment section?

the fun starts when the interest rate depends on time :p

@sudipachakravarty2332

4 жыл бұрын

oh no. we don't do that here

@MathMars Using the formula A=Pe^rt for continuously compounding interest, when you solve to see how long it takes P to double, you always end up with ln(2) divided by the interest rate. ln(2)=.693, so ln(2)/.06 is approximately equal to 72/6

sir, which platform/software is used for demonstration; its very attractive!!

I do that aprox on the top of my head. Maybe that explains the hair loss.

How can you know so much!

@Majagarbulinska

7 жыл бұрын

I mean, whatever I need to know I search for it in Khan Academy and you are almost always the tutor

I don’t get it!

Inter arresting

I need an answer now. How do you do this problem? What interest rate is required for an investment subject to continuous compounding to double in 10 years? I am so confused because this problem only has T=10years.

@RitsuOuO

7 жыл бұрын

***** It's correct, I figured it out a while ago though, thanks.

does anyone know how to work out 't', if a question does not state a number for it?

@cierraropp7789

7 жыл бұрын

I had the same question. I am trying to figure out what "t" is.

@user-im8kd4ey5n

7 жыл бұрын

HELP ME!!! PLEASE!!!!! MY BRAAAAIIIN!!!!

@jasontan6184

7 жыл бұрын

t is the number of years. u can figure it out by using logarithm.t will be: [ln(FV/PV)]/r

What a vid

Escoreal, Jobert L.

skip to 8:00 for what actually matters

@turnwell9530

5 жыл бұрын

ecksdee Thank you

My brain :(

That made no sense to me.

@alexlenskii

6 жыл бұрын

Cause you're stupid

@willardnyambalo934

5 жыл бұрын

you are funny

#Khan2016

*E*

RIP

Stop at 4:30, after that its nonsense

@Dawwe9505

6 жыл бұрын

That's literally the where the point of the video is lol

@Ash-ii4hg

3 жыл бұрын

idk, i understood it...

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