APY vs APR: What's the Difference?
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⚠️Disclaimer: I’m using the standard formula for the future value of an ordinary annuity to show how compounding interest works. I’m not 100% sure if my calculations are correct, so if there are any mistakes, I apologize. The purpose of this video is to illustrate the power of compound interest. I’m open to corrections. Thank you. Formula Used: \tβ€’\tFuture Value of an Ordinary Annuity: FV = P \\cdot \\frac{(1 r/n)^{n \\cdot t} - 1}{r/n} ⚑ Key Variables: \tβ€’\tFV: Final amount at age 60 \tβ€’\tP:
1:51
⚠️Disclaimer: I’m using the standard formula for the future value of an ordinary annuity to show how compounding interest works. I’m not 100% sure if my calculations are correct, so if there are any mistakes, I apologize. The purpose of this video is to illustrate the power of compound interest. I’m open to corrections. Thank you. Formula Used: \tβ€’\tFuture Value of an Ordinary Annuity: FV = P \\cdot \\frac{(1 r/n)^{n \\cdot t} - 1}{r/n} ⚑ Key Variables: \tβ€’\tFV: Final amount at age 60 \tβ€’\tP:
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