the power of interest dave ramsey's investment calculator
TRANSCRIPT
THE POWER OF INTEREST
DAVE RAMSEY'S INVESTMENT CALCULATOR
WHAT ARE SOME ITEMS YOU MAY LOAN TO A FRIEND?
The owner does not get to use the item for a period of time.
A saver is paid when they allow a borrower to use their money for a period of time.
Interest is paid by a borrower and received by a lender or a saver.
“HE WHO HAS THE GOLD---RULES!”
“I do not believe Dave
Ramsey’s claim.”
SIMPLE INTERESTPaid on the amount of the original investment and does not change over time.
A1 Type the word SimpleA2 Type in 100A3 = A2 + 5Drag
COMPOUND INTEREST
Paid on the amount of the original Paid on the amount of the original investment investment and all accrued interestand all accrued interest..
C1 Type CompoundC1 Type CompoundC2 Type 100C2 Type 100C3 = C2 * 1.05C3 = C2 * 1.05
ADD $2,000 STARTING WITH A $100 INVESTMENT
E1 Title Add $2,000 per year
E2 Type 100E3 = (E2 * 1.05) + 2000
RULE OF 72 HOW MANY YEARS TO DOUBLE YOUR MONEY?
Divide 72 by the Interest RateInterest rate is 4 72/4 = 18 years.Interest rate is 18 72/18 = 4 years