Compound Interest (Investing)
This video introduces compound interest and the mechanics of compounding. It teaches compounding by explaining the basics of interest and then exploring how interest-on-interest builds over time.
Stocks & the Compound Annual Growth Rate (Investing)
This video continues the discussion of compounding by explaining what a compound annual growth rate, or CAGR, is, and how it is a useful measure of an investment’s performance over time. It introduces CAGR in the context of stocks and the stock market, and looks at the stock market’s historical performance over the last 100 years.
Debt 101 (Personal Finance)
This video explores the other side of compounding: when you are paying interest instead of earning it. It explains simple amortization of a debt, the ratio of principal to interest paid, and how the term of a loan and the interest rate interact.