case 1

Compound Interest, Clip 1, 4:20

In this clip the teacher leads a discussion with the students about why different ways of compounding would make sense.

Compound Interest, Clip 2, 4:48

After the above discussion, the teacher goes back to a problem they were working on concerning a bank account with 1000 at 8% compounded monthly.

Compound Interest, Clip 3, 2:55

In this clip they discuss the annual growth factor.

Compound Interest, Clip 4, 5:07

The teacher is going over the formula for a bank account with a principal amount of 1000 and a rate of 8% compounded monthly.

Compound Interest, Clip 5, 2:49

This is a way to introduce students to compounding continuously.

Compound Interest, Clip 1, 2:49

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

  • The teacher distributes the work amongst the students in order for them to see what happens as the number of compounding periods increases. Generally students believe that the more times per year it is compounded the more interest they make, they are unaware of the limiting value.
  • In this case the instructor uses a slide to show the students how their return levels off. This is a nice excercise to lead in to the introduction of e.

Return to Support Home