And really figure out what's going to happen to you if housing appreciates, depreciates.

Let's say this is what we assume is how many cupcakes we sell.

Periods per year

Periods

At the end of 10 years, I owe 500.

Computed Style

Compounded for 64 years.

That's why we say it compounds.

Calculation canceled

Already computed intersection point

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.

And we raise that to the n power.

I'm just multiplying this times itself.

That equaled 2.613.

We get r is equal to 0.23, or 23 .

166 effective interest rate.

So in the first exercise, we will calculate the mean of data.

Will have an easy reckoning,

Soon an easy account will be taken from him.

he shall surely receive an easy reckoning

His account shall presently be taken by an easy reckoning.

He surely will receive an easy reckoning,

He will have an easy settlement.

shall be called to an easy accounting,

He truly will receive an easy reckoning

he will receive an easy reckoning,

shall have an easy reckoning

He will be judged with an easy account

will be easy,

He shall be reckoned with by an easy reckoning,

Soon will his account be taken by an easy reckoning,

That equals my final payment or how much I owe once all the interest and the principal has compounded.

Calculated estimate variance

And of course, on a monthly basis, that means in interest per month, I'm paying, just to get an idea.

I also want 100 of that.

I don't know why I put brackets around that.

I borrow 50, and let's say it's continuously compounded at some rate r, and let's say it is continuously compounded for 10 years.

It's called the Phi coefficient. The Phi coefficient starts with a table.

But I'm just going to keep it a simple example, compounding annually.

So again, the values of the coefficients are estimated such that the model comes up with optimal predictions.

We said it's essentially 100 interest, but we're dividing it by 12 per month, but we're compounding it 12 times.

Here you can see the statistical results calculated from the selected histogram part. These values are available for all channels.

Perform symbolic and numeric calculations using Maxima

Just to clarify.

My head I think implicitly made the numbers work out nicely.