Let's take advantage of the vacation to go on a hike.

We borrowed money at high interest.

Actually, I'm going on a hike.

(Applause)

I also want 100 of that.

We borrowed money at high interest.

Autumn is the best season for going on hikes.

This is actually the power of compounding interest.

I went hiking.

Father and son hiking.

That's 100 , right?

100 interest.

What gets raised? A noun phrase, a vital role to announce here interest rates.

We all have heard of it.

Let's go hiking this weekend.

I went hiking with the group.

So, what do you want to do today?

Should be one or two days' hike.

So now, in this situation. we are compounding the interest.

So I have to pay some interest. There was 10 interest.

If our earnings are 350,000.

Which is essentially you take the original amount you borrowed, the interest rate, the amount, the fee that you pay every year is the interest rate times that original amount, and you just incrementally pay that every year.

Remember, this is the annual interest rate but this is an overnight loan.

No, I'm joining the Vicmans Community Hiking Group.

Bring a lunch for our day of hiking.

Before Interest and Taxes.

So this is lending some cash.

So now, by essentially printing money, buying debt, increasing the supply of money, two things happen.

Oh, my rate right.

And this is the same thing as what?

If hundreds of people didn't buy this, we couldn't put it on the market.

I had to use that as part of the down payment on my house.

In the last video, I hopefully showed you that if I borrowed P dollars, and I borrow it for a year, and you were to charge me an interest rate of r, or you could say 10r , then at the end and we were to compound continuously.

So we'll say Hey this is your cash for tonight, if you need it for the next night, we'll talk again.

Every time we go hiking, he falls behind.

I hiked through the Pyrenees from Spain to Paris.

Let's take advantage of the bargain sale and save money.

He lends money at a high rate of interest.

So 9 on 45,000.

And a loan to someone else that I've given is an asset.

And then of course you get the interest from the money that you put in the bank.

Interest on loans is high at present.

So let's say I'm charging r percent.

And of course the difference is the money that he had to spend on tax.

OK, so let's say I borrow 1,000.