CORRECTION: ON MINUTE 5:57 R WAS SUPPOSSED TO BE .04
In this video I explain the concepts of simple interest and compound interest. Interest is usually compounded monthly, quarterly, semiannual, annual or continuously. Interest problems could be about loans or investments. If you are investing a sum of money at 4% compounded monthly, at the end of the first month, the interest you earned is calculated and added to your capital so that, in the second month you have a higher capital.