Money can grow on its own โ understanding compound interest is like discovering a superpower for your savings.The money a bank pays you for keeping your cash there โ or what you pay for borrowing.InterestThe original amount of money you save or borrow, before any interest is added.PrincipalInterest earning interest โ your money grows faster because the total keeps getting bigger.CompoundInterest calculated only on the original amount, not on the interest already earned.Simple interestThe percentage used to calculate how much interest you earn or owe each period.RateHow long you plan to save or invest โ the longer the horizon, the more compounding helps.Time horizonA shortcut: divide 72 by the interest rate to estimate how many years it takes to double your money.Rule of 72Compound interest means interest is earned onโฆthe original amount onlyinterest plus the original amounta fixed monthly feeUsing the Rule of 72, how long does it take to double money at 6% interest?6 years12 years72 yearsWhich grows faster over 20 years?Simple interestCompound interestThey are the sameThe original amount you deposit is called theโฆratecompoundprincipal
Type what you hearBravo!Yes!Perfect!You got it!Great ear!Not that one. Try again.Tap me to hear itRepeat after meLearn by doingTap a picture, then its wordTap the microphone and say itBeautiful!Not quite. Listen and try again.Listen once moreTry againRemember this onePerfect sentence!Listen to the right orderWritten perfectly!Look at the spellingPass the quiz to bank your Mondi.You already completed this lesson.Back to your course.You did it!That landed. Good.Not quite. No panic, we go again.Your turn. Take your time.Easy does it.Come on, you can do this!Right on the beat!Feel the rhythm and go.Look at you, smashing it!Nailed it.Clean answer. I noticed.Overthinking it? Try again.Quick one. You know this.Read it twice, then answer.Five stars!Excellent answer. Would book again.No worries, guests forgive. Once more.Your turn, the room is yours.