How to Use Compound Interest to Your Advantage

Hello there! Today's video is about Compound Interest which uses a similar concept as exponents. Two different common types of interest are:
1.) Simple Interest
2.) Compound Interest
Compound interest is the kind of interest that stacks on top of each other. For example, you start with 100 and the compound interest rate is 1% annually. Next year, you get 100 + 1% which is equal to 101. The following year, you get 101 + 1% of the new amount which is equal to 102.01
Compound interest is commonly seen when using credit cards or in savings/investments. When you are using credit cards, the best way to use compound interest to your advantage is either lower the amount you are borrowing or decreasing the amount of time you are borrowing for. When you are investing and saving, the best way is to either increase the amount you are putting in or increase the amount of time the investment grows over.
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