Many young people are unfamiliar with the concepts of simple interest and compound interest, and how the different rates could impact their wallet over a number of years. In this program a teen planning to purchase a new bike investigates several financing options: personal loans, interest-free loans, store credit, credit cards, and investing her money in a savings account. Using spreadsheets and comparisons, the video clarifies each of her various choices, considering fees and charges, interest earned or paid, and how long it will take to achieve the savings goal.
Many young people are unfamiliar with the concepts of simple interest and compound interest, and how the different rates could impact their wallet over a number of years. In this program a teen planning to purchase a new bike investigates several financing options: personal loans, interest-free loans, store credit, credit cards, and investing her money in a savings account. Using spreadsheets and comparisons, the video clarifies each of her various choices, considering fees and charges, interest earned or paid, and how long it will take to achieve the savings goal.
General Note
Encoded with permission for digital streaming by Infobase on January 16, 2012.
Learn360 is distributed by Infobase for Films for the Humanities & Sciences, Cambridge Educational, Meridian Education, and Shopware.
Content Note
Comparing Simple and Compound Interest (3:28) -- How Compound Interest Works (2:56) -- Loans with Interest (5:10) -- Interest Free Options (5:34) -- Credits: Interest, Loans, and Credit (0:23).